ESSEX COUNTY WOMAN- AND MINORITY-OWNED BUSINESS EXPANDS WITH STATE SUPPORT
May 4, 2010
Fairfield-based Manhattan Maintenance Co., an office building janitorial service business, Monday closed a $600,000 loan with Provident Bank to meet working capital and refinancing needs.
Through the state’s Main Street Business Assistance Program, the state Economic Development Authority provided a $150,000 participation in the loan as well as a $50,000 guarantee of a $100,000 line of credit that was approved by Provident.
A woman- and minority-owned small business, Manhattan Maintenance was founded 25 years ago by Taryn J. Peppo, its president and CEO said.
According to company Vice President TJ Barnes, 2009 produced the company’s highest increase in year-over-year top-line revenue growth in its history – approximately 46 percent.
The company credits this to diversifying its client base to include the U.S. government, Mercedes-Benz Fashion Week in Manhattan, the Prudential Center in Newark and several
Fortune 100 companies that expanded the company’s service area from New Jersey to the entire mid-Atlantic region.
The company expects to create 15 new jobs and maintain its staff of 61.
Barnes said the company started a new job Monday that will lead to 12 new employees being hired, 10 of which will be full time. Other advantages cited by Barnes include a lower cost of debt capital through the low rate financing (lowering the company’s WACC and increasing profit margins), refinancing its mortgage into a new 10 year floating rate mortgage at a higher property valuation than the purchase price in 2006, a new line of credit, new capital to expand into a new niche business line, and lowering its debt service by approximately 15 percent.