Columbus, Nebraska, Apr 03, 2013 -- Mohrmann Tool, Inc. and owner Joe Eckert were recognized today in Columbus, Nebraska by USDA Rural Development as an example of how Rural Development’s Intermediary Relending Program (IRP) helped to provide gap financing for the purchase of his business. The event is part of Community Development Week activities in Nebraska.
“USDA Rural Development is pleased to have been a funding partner in the purchase of Mohrmann Tool, Inc.,” said Nebraska State Director Maxine Moul, USDA Rural Development. “The Intermediary Relending Program provides loans to intermediaries who then loan to ultimate recipients, like Mohrmann Tool, Inc., for projects that include business purchases, establishment and expansion, and for community development projects.”
Nearly one year ago, Joe Eckert purchased the stock, and tool and die equipment of Mohrmann Tool, Inc., a growing business. Funding for the purchase was provided by Pinnacle Bank, the lead lender. Northeast Economic Development, Inc. (NED, Inc.) utilized USDA Rural Development’s IRP loan funds together with Platte County’s Community Development Block Grant (CDBG) funds to provide the “gap” funding needed to complete the financing package.
“The funding partners teaming together worked well on this business transition project. We have been utilizing USDA’s IRP program for many years and have several success stories such as this,” said Business Loan Specialist Jeff Christensen, Northeast Nebraska Development District.
The former owner was at retirement age and wanted to sell the business. Mohrmann Tool, Inc. was a family owned company that had been in business for more than 25 years, providing custom quality machining/toolmaking products for all industries including Caterpillar, John Deere, Appleton, Lindsey Manufacturing, Valmont, and others. The business started with a single milling machine and lathe and has grown to nearly a dozen different machines. Under new ownership, Mohrmann Tool, Inc. continues to provide the same quality products for which it is known, while growing its market share by adding new products, services and customers.
"We are grateful for the help we received from all parties involved. Without this help, it may not have been possible for us to get the funding we needed for the purchase of Mohrmann Tool Inc. Roger Kudrna and his team at Pinnacle Bank really stepped up to help make this dream a reality ,” said Eckert.
“When we first sat down together it was quite clear we would not be able to come up with a standard loan agreement for the full amount we needed to borrow. Mr. Kudrna was diligent in helping us explore different options to put together something that would work for us. He put us in contact with Jeff Christensen and the good folks at NED, Inc. Together, through the hard work, cooperation, and determination of these two groups, we were able to get the funding we needed and follow through with the purchase,” Eckert said.
For more information, contact Business and Cooperative Specialist Deborah Drbal at 402-437-5558 or Deborah.email@example.com.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Tom Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.
USDA, through its Rural Development mission area, has an active portfolio of $181 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.