Injection molder Glov Enterprises LLC is positioned for growth after receiving a $900,000 loan from the Michigan Community Development Block Grant program's Revolving Loan Fund.
Glov Enterprises, which operates out of a 52,000-square-foot facility in Tecumseh, Mich., is using the money as working capital and for investment into equipment and tooling for new business, according to Louis Farkas, managing director of Glov Enterprises.
"We have a series of new programs that require capex spending, and the CDBG monies are earmarked specifically for new projects," Farkas said in a June 20 phone interview.
"And in this case, the CDBG is a perfect vehicle for this type of … capex spending, to be able to build the business, to buy the equipment and the tooling to grow the business," he added.
CDBG is a federal grant program that uses funds received from the U.S. Department of Housing and Urban Development.
In Michigan, the Revolving Loan Fund portion of the CDBG program is primarily focused on lending to "small businesses that are unable to secure competitive financing traditionally" but can meet a national objective required by the program, according to the Michigan Economic Development Corp.
Glov Enterprises has committed to creating 26 new jobs over the next three years, with 51 percent going to low- to moderate-income workers. That includes mostly hourly workers and baseline labor, Farkas said — those on the factory floor who run the machines and man the forklifts.
He said the company plans to exceed that job target.
Glov Enterprises primarily serves the automotive industry. The company is a Tier 1 supplier to Ford Motor Co., and produces and ships license plate lighting for the Ford F-Series. It also makes intake manifold components used in Ford vehicles, interior trim components for BMW, Tesla and Ram as well as some new launches for door trim on the Honda Acura.
Other customers include auto suppliers Montaplast of North America Inc., Faurecia North America Inc. and Dräxlmaier Group, among others.
At its Tecumseh facility, Glov Enterprises has 23 injection molding machines in clamping forces ranging from 75-1,500 tons.
This is the company's second time receiving a revolving loan with the program. In 2011 — the same year Glov Enterprises was bought by Farkas and managing partner Moritz von Moeller — it was approved for a $360,000 grant for the purchase of machinery and equipment.
"When we bought the company, there were 15 employees, and we did less than $2 million in business," Farkas said.
Today, Glov Enterprises has 73 employees. Sales for 2019 are projected to be more than $7 million, Farkas said, with booked business for 2020 tipping sales past $8 million. Though, Farkas said if everything goes according to plan, the company could approach $10 million in sales by then.
"We've got a lot of irons in the fire, and we're looking to land a few new contracts," he said.