Backed with a $6.5 million U.S. Small Business Administration loan, Lynam Industries Inc. will move to a 72,000-square-foot facility at 13050 Santa Ana St. in Fontana. The loan covers the purchase of the plant from seller Patrick Industries Inc. in Elkhart, Ind., a supplier of products to the recreational vehicle and manufactured housing markets.

The Fontana facility has been vacant for several months.

Founded in Chino in 1989, Lynam Industries has operated in Mira Loma since 1999. With 80 employees, Lynam has outgrown its plant at 11186 Venture Drive. The firm added five workers this year to handle two new customers, President Troy Lindstrom said.

Lynam Industries supplies sheet metal products to original equipment manufacturers, primarily in the data and telecom sector, especially open-frame architecture cable and wiring systems. The manufacturer expects revenue of $16 million this year.

"We're having a pretty good year," Lindstrom said. His customers tend to have long-term plans not affected by bumps in the economy, he said.

Operations are scheduled to move the two miles to Fontana on Aug. 15.

The Inland Empire Economic Partnership in Riverside, a private, nonprofit regional economic development organization, helped arrange the move to Fontana by putting Lindstrom in contact with Enterprise Funding Corp. in Redlands, a nonprofit corporation that funds loans for companies that increase employment and revitalize business districts in the region.

The partnership's mission is to attract, create, expand and retain business to increase the region's growth and economic output.

Contacts help

Lindstrom initially contacted the partnership in March as Lynam Industries expressed a need for financing options said Steve Harrington, vice president of IEEP economic and work force development.

At that time Lynam was "evaluating options outside of the state," Harrington said. He initially spent two hours assessing the firm's needs.

"Troy's a local guy, he's got kids. They live in Corona," he said.

The partnership provided contacts with officials from Fontana and the utilities to facilitate permits for Lynam's ovens and other manufacturing equipment.

Representatives from Southern California Edison Co., Southern California Gas Co. and South Coast Air Quality Management District made direct contact with the firm to facilitate the start-up process and make energy efficiency recommendations.

Meanwhile, Enterprise Funding arranged for the SBA loan.

"We wouldn't have been able to do this without them," Lindstrom said.

And even with the partnership's involvement, "This has been a slow process, but at least they ghot us into the right office."

U.S. help

SBA 504 loans provide long-term, fixed-rate financing for real estate or equipment purchases through SBA-licensed certified development companies. Proceeds from 504 loans must be used to purchase fixed assets such as: land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment with a useful life of at least 10 years.

Soft costs like architectural and legal fees, environmental studies, appraisals, and interest and fees on the construction and/or interim bank loan can be rolled into the note. The 504 program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing existing debt.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50% of the project cost, a fixed rate loan secured with a junior lien from the certified development companies (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the cost, and a contribution of at least 10% equity from the business being helped.