Case Study: Rescue Welding, Inc.

Rescue Welding, Inc., a structural steel welding and metal fabrication company, was established in Somersworth in 1994. By 2010, with decreasing revenues due to the economic downturn, Rescue carried a large tax liability and was facing the threat of its bank line of credit not being renewed. The company approached SEDC for funding to refinance its outstanding LOC, pay the tax liability, establish working capital and fund the cost to get the company certified to perform bridge repair work, a market that was expanding as a result of federal stimulus dollars.

SEDC provided Rescue with the necessary loan, believing that the funding would enable the company to be positioned to capitalize on upcoming regional infrastructure projects. When Rescue Bridge Repair, a division of Rescue Welding, was awarded a $3.9 million bridge rehabilitation project in 2011, a line of credit was required in order to prepare for the project. Due to the company's prior year losses, local banks were unable to provide a line of credit. SEDC stepped in and issued a $500,000 line of credit. With the rehabilitation project contract, Rescue was up to 7 full-time employees in its Somersworth office and 8 union workers on 3 separate job sites.

In 2012, Rescue needed a large CNC drilling machine in order to efficiently, accurately and economically perform aspects of the contract work, as well as to grow in new steel fabrication markets. Again, the company came to SEDC; this time for an equipment loan. To date, SEDC has issued $785,000 in term loans and $500,000 line of credit to Rescue. The result is that the contract work is beginning to pay off and the company has bid on several multi-million dollar contracts in the Northeast.

Throughout the relationship with Rescue Welding, SEDC has been providing technical assistance which has included finding a part-time financial officer who has helped turn around the company finances and vastly improved financial reporting capabilities. Also, the company has participated in the Dashboard Initiative, a joint oversight committee by the Small Business Development Center and SEDC whereby budgets, financial projections and analyses are performed and reviewed on a regular basis. This has greatly contributed to the financial improvement and success of the company.

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