When you unwrap your banana nut, blueberry or favorite flavor muffin and take a bite, you may wonder what ingredients it contains (and # of carbs...While Wally's, Inc. and UnitedBaking Co., Inc. have used some fine ingredients in their muffins, you should be aware of perhaps the finest ingredient - the thing that's behind the muffins: creative financing to make it happen.

These two entities, United Baking Co., Inc. (the manufacturing end ) and Uncle Wally's, that's Wally Amos of Famous Amos Cookies, the image and marketing end, have received loans totalling $6,119,000 from a consortium of lenders, including Commerce Bank, New York Business Development Corporation, American Equity Insurance Company, New York Job Development Authority, and Long Island Development Corporation. This mix of financing ingredients was made necessary by the size of the project and the varied nature of the company's needs. The funding of this project shows how a variety of sources can be blended - ranging from conventional bank financing to nonbank financing to government related financing. The Long Island Development Corporation, for example, actually is making three loans to the companies - all under the SBA 504 loan program. They will be used to purchase several types of improved production line equipment for the muffin baking facility in the Shirley Industrial Park and also to help in renovations to the company's physical plant.

"Long Island Development Corporation and its present 504 loan is just one part of the story of the growth of this company," says Phyllis Hill Slater, treasurer of Long Island Development Corporation. "We made a NYS/EDA Targeted Industry Loan two years ago which helped the muffin manufacturer move from Bohemia, Long Island to a larger factory in Shirley and now we are again involved in funding capital improvements to help further growth and job creation. The other loans will provide both senior and junior level funding for building renovations, expansion and equipment purchase. What they all have in common, is that they're long term. The SBA 504 loan is also fixed at a low interest rate and altogether, we have created a very affordable (albeit complex) financing package to meet this company's complex needs. The end result will be more jobs for Long Island."

Muffins have provided the means for Uncle Wally Amos to spend most of his time on philanthropic activities such as literacy, permitting him to help a broad spectrum of people. Long Island Development Corporation and the other lenders who are part of this creative financing are proud to help Uncle Wally in his efforts by enabling the growth and success of his companies. This is one time that creative business financing has not only helped a small business grow but has had a direct impact on enhancing its community impact.

For more information about any of the business financing tools indicated in this story, contact Long Island Development Corporation at 516-433 5000.