SECURING FINANCIAL STABILITY FOR FRESH SEAFOOD DISTRIBUTOR

Ports Seafood
San Francisco Bay Area, Calif.

Situation:

Ports Seafood is a wholesale distributor of fresh fish and live shellfish in the San Francisco Bay Area. In 2002, the Ports Seafood purchased a new facility to house its seafood distribution operation. After the purchase, the company realized that improvements would be necessary in order to expand the business for the future. The company had to use its line of credit to make improvements to the property, a high-interest approach to financing.

Solution:

The Bay Area Development Company and CRF determined that the business was eligible for a $700,000 New Markets Tax Credit loan, which had the advantage of considerably lower debt service. The long-term permanent financing enabled the company to repay its line of credit and convert high interest debt into a more stable long-term debt program.

Benefits:

The improved stability of the business eliminated the threat to the business and allowed the company to retain all 40 of its employees. In addition, the expansion made possible by property improvements allows for the hire of two to three new employees.