Siblings Start Their Business in Their Parents' Garage and End Up Acquiring a Cutting Edge Tech Facility with SBA-backed 504 Loan
Category: Success Story
Eddie and Aaron Silverberg worked from surviving in their parents' garage to getting an SBA 504 loan for a new cutting edge facility.
Eddie and Aaron Silverberg’s business started small like so many other famous success stories: in their parents’ garage. Flexible Assembly Systems works with light industrial manufacturing companies to provide industrial tools and automated systems. Their products are used in a range of applications from aero-space to pharmaceutical. The Silverberg’s San Diego-based company is an international distributor and supplier of industrial tools and products throughout North America and the European Union. Its product lines include automation components, custom engineered solutions, hand tools, hoists, industrial robotics, material handling, laboratory, torque-controlled power tools, soldering, safety, screw feeders, and scientific equipment.
The Silverbergs wanted to continue to expand by providing custom-engineered solutions for clients. In the past, they had been innovative by creating an engineered applications division focused on providing solutions to common manufacturing problems. The duo managed a talented team of design engineers, programmers, project managers, electrical engineers, and machine builders, and they wanted to give them the space to grow. They didn’t qualify for traditional financing to purchase or renovate their own space, so they went to the SBA for assistance.
Using the SBA-backed 504 Certified Development Company loan program, Flexible Assembly Systems acquired a 20,000 square-foot cutting-edge tech facility, where they have grown their team to 28. With SBA assistance they have eclipsed their humble origins and purchased their own design and development space.
Thanks to the SBA 504 loan, Eddie and Aaron have expanded operations, hired more people, and seen an increase in sales and revenue. Flexible Assembly Systems has survived two major recessions, which helped them become a stronger and healthier organization.
The company's product lines have grown over the years, but the Silverbergs' philosophy has stayed the same: grow the business by providing valuable services and products. Flexible Assembly Systems' sales have increased recently with the addition of two new high-profile clients: an electric car company and a surgical robotics company.
From the owner
The Silverbergs on one of their biggest challenges: "The challenge we faced in our business was the same that so many other small businesses experience: financing for expansion. We had to decide whether to invest our capital into growing our business by hiring more people or purchasing a building to accommodate future growth."
For more information
Small Business Guide: www.sba.gov/business-guide
SBA Funding Programs: www.sba.gov/loans-grants
SBA 504 Loan Program: https://www.sba.gov/offices/headquarters/ofa/resources/4049
Company name: Flex Assembly Systems, Inc.
Location: San Diego, California
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