Incubator loan encourages job, company growth
Taylor Mechanical & Piping Solutions LLC plans to add more jobs in the new year, thanks largely to a loan from the Red River Region Business Incubator.
R3bi has approved $15,000 from the incubator’s revolving loan fund. For company owners Eric and Melissa Taylor, the fund means continued success and more employees. TMPS is a resident client of the incubator.
“This funding will give us the opportunity to hire two additional employees to our crew of three full-time and two part-time employees,” Eric Taylor said. “The positions will not be filled immediately but will be coming up in the next month or so.”
The loan committee recognized that TMPS has an outstanding business model, strong financials, and provides a service that is in high demand, Executive Director Hank Betke said.
“This is why R3bi exists,” said Betke. “We are here to help businesses increase their chances of survival during the crucial early startup phase.”
The nature of TMPS’ business is such that there is typically a long gap between work completion and when major industrial customers issue payments. The revolving loan fund helps bridge that gap, allowing TMPS to continue to pay wages to newly hired employees, purchase inventory and equipment, and pay travel expenses and overhead until they begin receiving payments on accounts receivable.
“It’s great to have this type of funding available,” Melissa Taylor said. “Tenants from R3bi have access to a board of experienced business consultants, all their office needs, and now funding assistance if needed. It is a great tool for the tenants as well as R3bi.”
TMPS’ business plan also won the company $10,000 in the R3bi 2012 Business Plan Competition.
TMPS’ loan is the first from the revolving loan fund. It was established through a $50,000 Rural Business Development Grant from the United States Department of Agriculture (USDA) to the Red River Region Business Incubator.
“The R3bi revolving loan fund helps startup and early-stage local businesses to obtain financing and credit for working capital, infrastructure, or equipment they might not be able to borrow from traditional lending institutions,” Betke said.
Only R3bi virtual and resident clients are eligible to receive funding through the program.
“As a start-up business, even with our success, our company is just too new to gain access to capital from traditional lending sources,” Melissa Taylor said. “What makes the R3bi revolving loan fund unique is the loan committee already knows we are a new business so decisions are based on a different set of criteria than traditional lending institutions.”