A fourth-generation family owned agribusiness, Roy Umbarger & Sons, has completed construction on a feed mill on the east side of Franklin. The new construction includes a state-of-the-art premium livestock feed mill, a warehouse and offices.

Most of the company’s operations moved to Franklin from nearby Bargersville. Jackson Umbarger, the company chief operating officer and fourth generation leader, says the company was landlocked at the Bargersville property on which his great-grandfather, Roy Umbarger, opened a small feed mill in 1939. In the 82 years since, Umbarger & Sons developed into an ag industry leader with more than 30 employees and sales reaching more than 23 states.

The new feed mill is located on 24 acres east of the SR 44 and I-65 Franklin interchange. The Umbargers’ new project was financed with a loan from the U.S. Small Business Administration 504 program. First Merchants Bank and Indiana Statewide Certified Development Corporation provided the loan.

Indiana Statewide CDC works with local Indiana lenders to issue SBA 504 loans to help owners of expanding or startup small businesses buy real estate, buildings and equipment. SBA 504 loans can give small business owners long-term, fixed-rate financing similar to commercial loan terms available for large companies.

Marty Umbarger, company president, says, “The SBA 504 loan along with our local bank, First Merchants, is providing us the needed capital to modernize and grow our business.”

“The loan gives us a longer fixed-rate of interest with a very competitive interest rate. The long-term repayment period and low, fixed interest rate help our budgeting, and these are features we could not have found in a conventional business loan,” Umbarger says.

George Dougherty of First Merchants says, “We are honored to work with both the Roy Umbarger family and Indiana Statewide CDC to create a new state-of-the-art feed mill to better serve the agriculture community both locally and throughout the United States. We are excited to see their future.”

Background:
Indiana Statewide CDC (www.cambridgecapitalmgmt.com) has approved over $725 million of financing for more than 1,500 Indiana companies since 1983, creating or saving more than 27,000 jobs, and is the most prolific CDC in Indiana. These projects represent more than $1.8 billion in expansion financing for Indiana businesses.

Executive Director Jean Wojtowicz says, “SBA 504 loans help small businesses grow because borrowing companies can put as little as 10 percent down and receive a low, fixed interest rate for as long as 25 years. The SBA guarantees bonds sold privately to finance a portion of the loan. With the guarantee, we can offer more favorable loan rates than generally available to small businesses.”

First Merchants Bank (www.firstmerchants.com) is a full service financial institution offering an array of services including commercial & consumer banking, treasury management, private wealth, and administrative services. With assets of approximately $12.3 billion and 130 banking offices in Indiana, Michigan, Ohio and Illinois, the company invests in growing its presence and community impact in the Midwest.

Roy Umbarger & Sons Feed Mill (www.umbargerandsons.com) purchases and stores corn and soybeans from local farmers to use or market. Umbarger produces a complete line of application equipment, fertilizer and farm chemicals, and its show feed mill and warehouse supplies animal feed for almost all farm species through a network of more than 200 dealers in more than 23 states.

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