GAF assisted a San Antonio, TX based, minority owned, durable medical supply company refinance its debts and provide needed permanent working capital to meet its growing sales.
In 2005 after 20 years of working in the finance department of a major corporation, Jane Gonzalez, a San Antonio native, founded MEDwheels. The idea to create MEDWheels came in 2004 during a trip from Philadelphia to San Antonio, while providing end of life care to her mother. Jane realized there was a gap in affordable hospice care to serve local markets. To address this need in the Greater San Antonio area, MEDWheels was born.
The company provides durable medical goods to its local community as a preferred provider for programs like Medicare, Medicaid, Wellcare, Humana, and Care Improvement Plus. Through its preferred provider programs, MEDwheels supplies its client’s with wheel chairs, walkers, hospital beds, compression socks, oxygen tanks, catheters, mobile electric scooters and a dozen or so other products for use at home.
GAF provided MEDWheels with two loans totaling approximately $500,000. The first loan was utilized to refinanced MEDwheel’s existing loan with Wells Fargo Bank for its commercial property. This loan possessed a fixed interest rate of 2.75% for 36 months and adjust to prime variable (3.50% today) for the remainder of the term. Total term is 300 months.
The second loan provided equity to refinance existing debts, and contained a sizable amount to use as permanent working capital. After a 12 month interest only period, this loan also had a fixed interest rate of 2.75% fixed for a total of 36 months and adjust to prime variable (3.50%) for the remainder of the term. Total term is 120 months.
The refinance saved the company $1,685 in monthly debt service (over $20,000 annually) that can be used to fund inventory and receivables for her growing company. It is anticipated that this loan will retain 10 jobs while creating 4 new full-time opportunities.