Badcock Approved For Sba Loan Program After Lengthy Negotiation

Furniture World Magazine

W.S. Badcock Corporation, one of the largest home furniture retailers in the country, announced today that Badcock dealers are now eligible for Small Business Administration (SBA) financing. They are also officially listed on the SBA's National Franchise Registry, which will allow dealers to easily apply for SBA financing. Those benefits, along with the new SBA financing options will offer significant benefits to entrepreneurs considering business ownership and existing Badcock dealers and corporate managers, including: -Lower down payments available through SBA financing -Longer amortization of terms -True long term, below market fixed rates on real estate loans (eliminating interest rate risk) -Competitive interest rates for eligible new or existing Badcock dealers and corporate managers -Streamlined review process for SBA loan applications Badcock's unique dealership business model was the reason behind a lengthy negotiation process. "Ironically, the dealership business model that provides so many benefits to our dealers, was the very thing that delayed the approval by the SBA," said Don Marks, Badcock president and CEO. Badcock's model offers the benefits of business ownership with less risk and quicker start-up because the corporation consigns all its merchandise to the dealers and does not require a franchise fee. Last year, Badcock revised their dealer contract, offering better benefits to their dealers including a ten-year term agreement that replaced their 80-year old “30-day-out” clause. These changes, along with assistance from Todd Kocourek, CEO of Florida First Capital Finance Corporation, helped Badcock gain the SBA approval. "I was a strong supporter of this initiative because I really believe that Badcock is a successful, highly regarded company that brings many economic benefits to the communities it serves," said Kocourek. "This is a very big day for Badcock and its dealers. The benefits that the SBA financing will bring to them is invaluable." The approval of these SBA loans is also significant because it will help Badcock further their expansion and modernization plans. In addition to the contract revisions, Badcock recently announced plans to expand into the Southeast, targeting the previously untapped markets of Kentucky, Virginia and West Virginia. In 2000, they began converting new and existing stores to their Badcock Home Furniture &more concept, which includes a product line of more than 3,000 items, a brighter, more spacious store display and a new logo. By 2004, they plan to have 80 percent of the stores converted. In addition, Badcock recently announced a complete overhaul of their information technology systems. "This has been a significant year for us," said Marks. "We've announced expansion plans and are quickly moving to open new stores throughout the Southeast. We're in the process of completely overhauling our technology systems and we have a terrific network of dealers. As we move toward our Centennial year, I can't think of a better way to celebrate our past and future than to be able to offer this SBA financing to our dealers." About W.S. Badcock Corporation: Badcock Home Furniture &more has more than 320 locations throughout the Southeast and approximately 240 of those stores are dealer owned and operated. Badcock is headquartered in Mulberry, Florida, where the company was established in 1904. For inquiries about the company or for dealer opportunities, please go to www.badcock.com or call 1-800-BADCOCK.