R & B Machine
R & B Machine is a leading manufacturer of highly engineered aerospace components and
assemblies, specializing in the precision machining, fabrication and EDM of complex, tight tolerance, mission critical metal alloy components for the satellite, aerospace, defense, energy,medical device and other high-tech related sectors.
The California-based R & B Machine utilized UDF’s investment to establish a second machining operation located in Huntsville, Al. This new high-tech facility is 20,000 sq ft and is housed in an industrial park where it operates as a subsidiary of R & B Machine. This structure is located in a highly distressed NMTC qualified census tract and UDF loans were used for purchasing equipment as well as for working capital.
UDF provided loans to the project that totaled $9.1 million.The subordinate financing for the project was given at advantageous terms including interest-only for the 7-year terms, below-market interest rates and lower-than standard origination fees.Without the NMTC, the project was unable to fill a funding gap necessary to complete construction. UDF’sfinancing filled the opening with terms that were unavailable from other lenders.
R & B’s AL site is located in a severely afflicted census tract with a 54.3% poverty rate, an unemployment rate of almost 19% and a median income that is only 34% of the area benchmark.
Bringing this new R & B factory to Huntsville provided an expansive range of assistance to the local community. The development of this new facility created 40 temporary construction jobs.R & B Huntsville brought 120 new job openings to the area along with 50 full time positions that pay hourly wages in the range of $15-$35 per hour with excellent health benefits, retirement benefits and life insurance benefits for full time employees.
Inaddition, R & B pledged to purchasing necessary and required equipment and buildingmaterials from localvendors which brings in revenue opportunities to local businesses. The construction employees hired were local, minority subcontractors and were another effort tofurther benefit area populace. R & B works directly with two
local community colleges (Drake Community College and Calhoun Community College) to develop training programs for entry-level machining jobs.