Formula for Success: The Unmatched Advantages
Of a Rural Location and an FFCFC 504 Loan

James Bugg and Michael Orand used to be competitors in the recycling business in Jacksonville. Recognizing the need for a regional recycling facility the two businessmen put their collective experience together, became partners and in March opened 1st Coast Recycling, Inc., in Palatka.

As part of their business strategy, co-owners Bugg and Orand opted for the incentives of locating/opening a small business in a rural area of Florida as well as the economic development benefits of a 504 Loan. They decided on Putnam County for the location and chose FFCFC to finance the $1.6 million project.

“We chose Palatka because it is an ideal, central location (close to Jacksonville, Orlando and Daytona) and, in Putnam County, we were able to find some really good, quality people to work for us,” Bugg said.

1st Coast Recycling processes everything from aluminum cans to discarded automobiles. All metals are first checked for toxic materials (which are extracted before the recovery process), then melted down or compacted and ultimately sold to various buyers.

“Without the FFCFC 504 Loan, we would not have been able to even think about starting our new business. We were able to finance the land and construction of a new facility, purchase the heavy equipment we needed, and finance in all the professional fees and soft costs with only a minimum down payment,” commented Orand. “This made it possible to conserve our working capital and hire 21 new employees as well as market our efforts.”

Of Florida’s 67 counties, 33 are designated as rural and qualify for 504 Loans under the SBA’s public policy eligibility rules. Business costs generally are less in these counties and they have greater access to federal, state and local economic development incentive programs, notes Kristen Tackett, FFCFC Vice President and Loan Officer.

“This project exemplifies the unmatched advantages that Florida's rural counties offer: business-friendly environments and small-town enthusiasm, with big-city convenience close by,” said Tackett. “And, without an FFCFC 504 Loan, 1st Coast Recycling would never have had a chance to take advantage of the great benefits of operating from a rural area.”