TRAVERSE CITY — Millions of dollars in U.S. government-backed loans will allow a Traverse City manufacturer to expand, diversify and add more people to its payroll.
"For us, it's a very, very important thing to give back to our community, and how we do that is providing manufacturing jobs," said Dodd Russell, president of Skilled Manufacturing Inc.
U.S. Department of Agriculture officials on Tuesday announced a total of nearly $7.8 million in guaranteed loans to SMI. The loans, issued by the Bank of Northern Michigan and backed by the USDA, will allow the company to restructure its debt and buy additional equipment. The plant shifted into the aerospace industry two years ago and produces components for various military and civilian aircraft.
The company also plans to add 25 more jobs at its facility on Aero Park Drive in Traverse City, Russell said. It's already hired 50 new workers and also is sub-contracting work to other area parts suppliers.
U.S. Sen. Carl Levin, who attended Tuesday's announcement, said it's important for government to support manufacturers across the nation.
"Government must work as a partner with manufacturing," Levin said. "If we're going to have a strong manufacturing base, it's not just going to come out of thin air."
State and local governments also are helping out the company. The Michigan Economic Growth Authority in December approved a state tax credit of $571,210 for Skilled Manufacturing apread over the next seven years.
The city commission last fall approved a 12-year industrial facility tax abatement worth more than $13,700 per year in local property-tax reduction. The city also approved a 6-year personal property-tax abatement on new equipment worth almost $26,700 per year.
USDA officials said the agency is stepping up its activity in Michigan with a flurry of business and industrial loan guarantees, along with other federal funding for housing and public infrastructure projects like water and sewer upgrades. The USDA also has money available for renewable energy projects and value-added producer grants.
State Director James Turner said in a recent interview the USDA approved $12 million in business loan guarantees in Michigan last year and plans to distribute around $109 million in 2010. The department has spent more than $1.5 billion in Michigan since the fall of 2008.
"We are open for business," Turner said.
Business editor Bill O'Brien contributed to this report.
Business
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Dodd Russell, president of Skilled Manufacturing Inc. in Traverse City, speaks about the government-backed loans his business will use to expand. Record-Eagle/Art Bukowski
Federal loans allow local company to add jobs
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