Every significant milestone starts somewhere. For Cambridge Capital Management Corporation, it was a $93,000 loan approved in 1983 and funded in 1984 for Leader Wire Inc. in Richmond to buy a building and equipment. Part of a $225,000 project with The First National Bank of Richmond (now part of Chase Bank, New York), that loan would become the first step on a road to $1 billion in partnership lending that Cambridge reaches this year.
The majority of that work comes through its SBA 504 Loan Program through Indiana Statewide CDC, a program designed to complement — not compete with — traditional bank financing by providing long-term, fixed-rate financing for owner-occupied commercial real estate and major equipment purchases.
“Reaching $1 billion is an extraordinary milestone, but the true measure of our success is the impact those investments have had on Indiana businesses and the communities they serve,” said Jean Wojtowicz, president and CEO of Cambridge Capital Management Corporation, an IBA associate member. “Every loan tells the story of a business owner pursuing growth, creating opportunity, and investing in the future. We’re honored to have been a financing partner in those journeys.”
Two of the projects helping push Cambridge over the $1 billion threshold involve IBA-member banks. It partnered with First Merchants Bank, Muncie, to help fund the business acquisition of Fineline Printing Group in Indianapolis. Originally founded by Argenine immigrant Richard Miller in 1981, Miller was ready to pass the business on to his children, Ric and Danielle Miller. They and new majority owner & CEO Michael Poon will use two SBA 504 loans to purchase the business’ building and equipment.
VidaLife School, a nature-based early learning center in Indianapolis, helps the children they serve grow through outdoor exploration, bilingual education, creative play and hands-on experiences designed to help them become curious, kind and confident. Cambridge partnered with First Internet Bank, Fishers, to help VidaLife refinance an existing 7a loan into a 504 loan, ultimately reducing the school’s interest rate so it can focus more of its resources on the mission instead of interest payments.
The IBA counts half of Cambridge’s 10 most active partners this year as of Aug. 7 among its membership, including:
- Lake City Bank, Warsaw: $8,322,000
- First Merchants Bank, Muncie: $5,441,000
- First Internet Bank, Fishers: $4,727,000
- Stock Yards Bank & Trust Co., Louisville: $3,615,000
- Merchants Bank, Carmel: $3,012,000
The partnership model allows banks to serve more customers while preserving liquidity and strengthening relationships. Communities benefit from new investment, job creation and a stronger local economy, as the $1 billion in investment from Cambridge is only their portion of more than $2.5 billion in total project investment throughout Indiana over the past 23 years.
Partnership Financing is an occasional column in Hoosier Banker featuring examples of IBA-member institutions engaging in partnership lending to better help the communities they serve. Send your examples to [email protected].
