Precision manufacturer secures SBA 7(a) refinance and growth capital for expansion
Introduction
Refinancing for growth and long-term stability. Cornovus Capital structured an SBA manufacturing loan totaling $1.25 million to refinance existing debt and provide additional working capital for a precision components manufacturer in the Midwest. The transaction consolidated multiple high-interest obligations, funded new equipment purchases, and strengthened operational cash flow to support ongoing expansion.
The SBA manufacturing loan was designed to enhance liquidity, reduce monthly debt obligations, and position the company for sustainable scalability. By leveraging the SBA 7(a) program, Cornovus Capital optimized repayment terms and working capital flexibility—allowing ownership to focus on production efficiency and long-term business growth.
Through disciplined underwriting and advisory oversight, Cornovus Capital delivered a structured refinancing and growth solution that allowed the company to modernize its operations, retain skilled employees, and expand customer capacity in alignment with rising market demand.
Challenge
Balancing debt consolidation with capital for expansion. The borrower faced high-interest debt from multiple short-term obligations that limited cash flow and restricted growth potential. Simultaneously, the company needed access to additional working capital to acquire new machinery, upgrade automation, and streamline production processes.
- High monthly payments from short-term loans reducing working capital
- Insufficient liquidity for equipment acquisition and modernization
- Need to consolidate legacy debt under long-term, stable terms
- Desire to strengthen post-pandemic operations with flexible funding
- Aligning new financing with future growth initiatives and staffing plans
Solution: SBA 7(a) manufacturing loan provides refinance and expansion capital
Comprehensive SBA 7(a) financing integrating debt restructuring and growth funding. Cornovus Capital structured a single $1.25 million SBA 7(a) facility combining debt refinance and working capital. The refinancing reduced monthly debt service by over 30% while freeing liquidity for production upgrades and growth initiatives.
The transaction adhered to all SBA 7(a) Business Loan Program standards and included a 10-year fully amortizing term with competitive fixed-rate options. Funds were allocated for equipment purchases, material inventory, and modernization of precision tooling—creating improved output capacity and operational efficiency.
- $1.25 million total financing package
- 10-year amortization with fixed and floating rate options
- Debt service reduction exceeding 30%
- Working capital allocation for equipment and facility upgrades
- Collateral secured by business assets and real estate
- 10% equity injection ensuring SBA program compliance
By consolidating debt under a unified SBA 7(a) structure, Cornovus Capital provided predictable cash flow and long-term flexibility—empowering ownership to reinvest in workforce development, automation, and market expansion.
Results
Unlocking growth through refinance efficiency. The SBA manufacturing loan enabled the borrower to strengthen balance sheet stability, improve debt coverage ratios, and secure long-term financing aligned with business expansion. The result was a 20% increase in production throughput and a measurable improvement in profitability within the first six months.
- 30% reduction in overall debt service costs
- Improved operating liquidity and debt coverage ratios
- Funding allocated for new CNC machinery and precision tooling
- Enhanced production output and turnaround time
- Expanded regional client base and new manufacturing contracts
Through refinancing and reinvestment of working capital, Cornovus Capital helped the company achieve sustainable performance improvements, operational resilience, and a foundation for continued manufacturing growth.
About Cornovus Capital
With over 70 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability.
Our expertise spans SBA 7(a) and 504 loans, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on certainty of execution and closing assurance, we guide businesses and investors through complex financial landscapes, securing funding tailored to their long-term objectives.
Why partner with Cornovus Capital?
At Cornovus Capital, we understand that complex transactions require sophisticated financing solutions. Whether repurposing commercial assets, structuring high-leverage debt, or integrating municipal incentives, we deliver capital strategies designed for certainty and efficiency.
What sets us apart
- Advisory expertise in SBA 7(a) and 504 financing for manufacturing and industrial growth
- Proven experience in refinance and expansion capital structuring
- Tailored debt consolidation strategies that improve liquidity and long-term stability
- End-to-end advisory and execution support from underwriting through closing
Contact Cornovus Capital
For manufacturing companies seeking SBA financing for refinancing, equipment acquisition, or expansion, Cornovus Capital delivers expertise, efficiency, and certainty. Our advisory approach ensures capital alignment across operations, real estate, and long-term growth needs.
Email: info@cornovuscapital.com
Phone: 513-993-3044
Website: CornovusCapital.com