Featured Loan:
Somarakis, Inc. ready to pump prosperity into community

Patents are powerful tools of the innovation economy. More than two decades ago John Somarakis used a revolutionary vacuum pump patent to start Somarakis, Inc. and develop it into an internationally known manufacturer.

Somarakis, Inc. manufactures large vacuum pumps used in industrial applications such as mining, pulp and paper processing, and water treatment facilities. It offers a proprietary bearing and seal system that allows the pump to continue operating if the primary bearings fail. In addition to the product patents, the company can manufacture pumps of a larger size than its competitors.

Managing success is also a challenge. Demand began to exceed Somarakis's ability to supply the market. The company's production was limited by the size and layout of its facility. "As we grew bigger and bigger, the building grew smaller and smaller," said Somarakis.

Somarakis found a new property with sufficient space to more effectively lay out production lines, as well as increase volume and his bank recommended the SBA 504 loan to finance it.

The program could also help with the purchase of new equipment and the moving expenses to move his large equipment to the new location.

Somarakis said he chose the 504 program because of the low down and the low fixed rate. He wanted to minimize his payments and see how the business expanded. He had had good experiences with SBA loans years ago and, like many business people, he also sought the advice of his CPA and attorney. They approved of the 504 program and its benefits.

Evergreen Senior Loan Officer Lynn Beadling worked with Mr. Somaraki and Scott Price of Umpqua Bank on the financing package. Somaraki said, "Lynn Beadling did an excellent job.  She is nice to work with and did more than I expected."

The loan package was closed using Evergreen's "simultaneous signing" process, whereby the SBA loan documents were sent to escrow to be signed along with the bank's. Umpqua Bank and Evergreen worked in tandem to meet all funding conditions prior to closing the bank's interim loan. As a result, very little post-closing follow-up was needed, shortening the SBA funding process by a month.

Now Somarakis Inc. has better efficiency and room to grow and offer repair services. The community will benefit from all the jobs that will be created. In the future Somarakis may buy more equipment with a second 504 loan.

To other small businesses, Somarakis recommends, "If Evergreen Business Capital approves your loan it will be a slam dunk with the SBA. It's a good thing, that's all there is to it."