FirstBank grants $2M in CAPLine financing to Kandor Manufacturing
In the next few months, Kandor Manufacturing will increase its staff with 225 new jobs based in Arecibo, after receiving a $2 million line of credit from FirstBank.
Kandor, a Puerto Rican company specializing in the manufacture of uniforms and military supplies, recently received the third line of credit issued on the island under the Small Business Administration’s (SBA) CAPLine Program.
The financing will allow the company to fulfill its contracts with the Department of Defense and the U.S. Navy.
Kandor Manufacturing also received the “Manufacturer of the Year” award for the Puerto Rico and U.S. Virgin Islands Region from the SBA District Office.
“We’re proud to issue a new CAPLine line of credit in Puerto Rico after granting the first one two years ago. Now, Kandor Manufacturing will increase its workforce, adding new positions at the company’s new 29,000 square-foot facilities,” said Nivia Castillo, vice president of business banking at FirstBank.
“In addition, it will be able to purchase the equipment and supplies needed to fulfill its contracts, thus stimulating the economy of the northern part of the island,” she said.
Kandor Manufacturing met all the SBA requirements for CAPLine Program approval, which include having eligible contracts and accounts payable, production capacity, and a solid accounting and financial structure.
CAPLine requires the company’s eligibility for the 7(a) Program, which guarantees a maximum of 85% of the loan up to $150,000, or 75%, from the first $150,001 to $5 million in combined debt with the SBA. There are four CAPLine products that customers may request: Contract loans, a type of financing for operational capital, based on the need to fulfill eligible contracts; Seasonal lines of credit, used to finance short-term business activities; Builders lines for financing direct costs of construction; and, working capital loans used for financing operational capital, based accounts payable, inventory and account receivables.
“I recognize that the efforts all of us working at Kandor Manufacturing have been the key to our success and our having obtained a multi-million-dollar contract for the next five years,” said Kandor Manufacturing President José M. Rodríguez.
“I appreciate my employees’ commitment, which made us deserving of SBA’s financing and recognition. I am excited to lead this great team of professionals and to help provide them with a solid base and stability for their families,” he said.