Salter’s Distributing is a family-owned wholesale distribution company supplying gardening supplies, batteries, stationery, toys and other miscellaneous items to convenience and grocery stores from Bakersfield to Lodi.  David and Cheryl Salter are graduates of the NxLevel Course held in Clovis.  While attending the course, they became active clients of the SBDC and stated they have run out of space for their business and needed help with obtaining financing to purchase a warehouse.

SBDC staff worked closely with them to identify the pros and cons of purchasing a warehouse.  After reviewing what was available, recommended building a warehouse on their existing property instead of buying.  Counseling and assistance then focused on obtaining the financing to build the warehouse.  Assistance focused on helping the client understand the commercial financing process as well as help and guidance with loan packaging.    SBDC staff kept in communication while the Salter’s applied with commercial lenders.  Because of one bank decline and another bank offer that had high interest, it was recommended that the Salter’s pursue private financing from a family member.  Using the package they developed with SBDC assistance, they were able to obtain the financing to build their warehouse.   They received a $110,000 loan and construction will begin in Spring 2011.

In addition to the $110,000 capital infusion, outcomes include the creation of five new jobs (being hired through the Madera Workforce Investment Board because of an SBDC referral).  Also, the Salter’s asked for a referral of any contractors to build the warehouse.  Because of an SBDC referral, they hired another SBDC Client (CDI, Inc) who received the contract to build the warehouse (total value of $110,000).