CAG Finance New SF Bay Tugboat
Capital Access Group (CAG) says that its $10.4 Million 504 Loan has enabled the acquisition of a powerful, 85-ton tractor tugboat for San Francisco Bay – Baydelta Maritime's 'Delta Audrey'.
Capital Access Group is a commercial real estate lender specializing in U.S. Small Business Administration 504 financing for growing businesses.
CAG explain that the Delta Audrey features the most modern design, engines, and equipment to increase safety, reduce fuel consumption and carbon emissions, and provide increased capability to stop or redirect a tanker in shorter distances.
“Our customers, the ship owners, continually demand more powerful tugs that can stop or redirect a tanker in a shorter distance, so we’ve been revamping our fleet since 2007 to build this class of tug—the most powerful on the West Coast for the work we’re doing,” said Shawn Bennett, General Manager, Baydelta Maritime. “The whole purpose is to increase safety by improving our ability to maneuver in case of an emergency, which is exactly what this tug is designed to do.”
“The SBA 504 loan program is a great fit for Baydelta Maritime,” said Jacklyn Jordan, President and CEO of Capital Access Group. “The 504 program provides access to low down payment, fixed-rate, long-term financing, which freed up capital for Baydelta to use for other purposes. In addition to creating new jobs, the Delta Audrey will increase shipping safety and efficiency in the San Francisco Bay.”
Capital Access Group financed $4.7 million and First Bank provided $5.7 million in financing for the Delta Audrey. First Bank also provided construction financing in the amount of $10.3 million.
“The longevity of the 504 loan is what helps us in terms of being able to free capital for other purposes including hiring the crew to man the tug,” said Bennett. “The SBA 504 loan enabled us to do it.”
“Our experience with Capital Access Group has been exceptional,” said Bennett. “Alan Jung (SVP & Chief Credit Officer) and Tom Parini (Loan Officer) were outstanding in terms of guidance and looking at all the data we kept throwing their way and helping us put it all together. It’s really been a great experience for us.”