IDA Gives $500,000 Loan To Excelco Newbrook Inc.
A high tech equipment machine shop in Silver Creek is getting a loan to help them reorganize and move the company forward.
During the Chautauqua County Industrial Development Agency meeting, board members approved a $500,000 working capital loan to Excelco Newbrook, Inc. The money will be used to buy materials for manufacturing operations.
According to IDA project manager Kristine Morabito, the company currently has 43 employees which would be retained with the loan, along with four new jobs.
Before the vote, Chris Lanski, Excelco Newbrook Inc. president and owner, discussed their operations and challenges they are facing. “ENI is requesting the working capital from the IDA to increase our cash available for financing raw materials in particular, to help manufacturing operations through the first half of next year. Once the materials are into production, and ultimately delivered to our customers, the resulting revenue from them will be available to support working process inventory and future material procurements to support our top line revenue,” he said.
Lanski noted that almost every job they have requires special materials and those materials require additional tests and inspectors.
They’ve been making some changes, including developing a partnership with another company called Precision Custom Components in York, Pennsylvania. “They’ve really helped us enter into the Naval reactors market,” he said.
Lanski said they continue to get new orders, up to now nearly $10 million in back orders.
They haven’t been able to hire new staff. Their goal is to bring in some new machinists and welders. “What we’re hoping it is going to increase our revenue opportunities next year by $1 million over where we are,” he said.
Lanski noted that they’ve made many changes in the company’s 75 year history. “Today, we have a clear path forward. The reorganization that we went through, it fundamentally changed everything that we do, the way we think and how we operate. … With the $10 million in profitable backlog that we have within our reach in 2023 to work on, the IDA can play a real vital role in opening the door in the future and closing the door in the past. so that ENI can realize the opportunities that we’ve worked really hard to get,” he said.
The loan will be at 4% for a five year term.
Morabito said even though the $500,000 for working capital is larger than they usually provide, “the loan committee supports the request and terms with the recommendation for approval by the CCIDA Board of Directors.”
Mark Geise, county IDA president and chief executive officer, said Lanski has refocused the company’s goals. “Clearly, over the last five years, they have worked very, very hard with Chris at the helm, making these changes, cleaning up the house and making sure that their accounting practices are in place and their certifications. They’ve worked very, very hard and it’s exciting to see they’re at this place now where they’re really ready to jump on some of the opportunities that are out there,” he said.
The IDA Board of Directors unanimously backed the loan.