Business Finance Program News

Marine Tech, LLC, increases efficiency with large-capacity barges purchased and transported from Alabama

Ted Smith, the owner and president of Marine Tech, LLC, says that the nature of his business and its equipment needs can make traditional financing a challenge.

“A standard construction equipment loan doesn't really fit,” explained Smith. “Our equipment can require a lot of capital upfront, but its useful life is decades long. We don’t recoup on our investment quickly, either, so terms need to be flexible to accommodate that fact,” he added.

Marine Tech services are diverse: marine construction, pile driving, stone revetment, corrosion protection, dredging, and wetland restoration, to name just a few. Customers include the US Army Corps of Engineers, US Coast Guard, Duluth Seaway Port Authority, National Park Services, and commercial dock/shipping companies. Employee count ranges from 15 to 40, depending on work flow.

“This has been a good year for volume, although very competitive. The big barges have helped us stay competitive.” —Ted Smith, President of Marine Tech

This summer, the Northland Foundation partnered with Marine Tech and its bank, Alerus, to finance just the sort of unique equipment purchase to which Smith refers. The company sought to replace two hopper barges with a 600 cubic yard capacity with ones that could hold 1,400 cubic yards each. A national search located the right barges in Mobile, Alabama.

With financing from Northland and Alerus in place, along with equity from Marine Tech, the barges headed north in early September via an inland waterway route to reach their new Twin Ports home.

“The Northland Foundation has been a good partner,” added Smith.

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$510,000 invested in three area businesses

The Business Finance Program has recently closed on $510,000 in investments to the following northeastern Minnesota businesses.

• Natural Harvest Food Co-op, Virginia

Two Quick Turn Loan projects, made in partnership with the borrowers' banks, were made to:

• BIC Services, LLC, Hibbing

• SpokeNGear GBC, Inc., Two Harbors

To learn more about the Business Finance Program and the tools available, please email Michael Colclough or call the Northland Foundation at (218) 723-4040.