Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

You are about to leave the West Town Bank Website

DISCLAIMER: When you click Accept you will be leaving the West Town Bank & Trust (“the Bank”) website and are going to a website that is not operated by the Bank. We are not responsible for the content or availability of linked sites.

ABOUT THIRD PARTY LINKS ON OUR SITE
The Bank offers links to other third party websites that may be of interest to our website visitors. The links provided in our website are provided solely for your convenience and may assist you in locating other useful information on the Internet. When you click on these links you will leave the Bank’s website and will be redirected to another site. These sites are not under control of the Bank. The Bank is not responsible for the content of linked third party websites. We are not an agent for these third parties nor do we endorse or guarantee their products. We make no representation or warranty regarding the accuracy of the information contained in the linked sites. We suggest that you always verify the information obtained from linked website before acting upon this information. Also, please be aware that the security and privacy policies on these sites may be different than the bank’s policies, so please read third party privacy and security policies closely. If you have any questions or concerns about the products and services offered on linked third party websites, please contact the third-party directly.

February 7, 2023   /   Tami McMoran

USDA business loans have helped thousands of rural businesses across the country start and scale operations while powering the growth of American industry. USDA business loans for renewable energies, farming, food production, and supply chain operations are recent focus areas for the USDA programs since they are aimed at creating jobs and modernizing rural economies for the next generation.

Hundreds of business owners have worked with West Town Bank & Trust’s Government Guaranteed Lending team to leverage USDA business loans as a springboard for their growth. How would you use a USDA business loan program for your next success?

Zilks Plus Resources increases food manufacturing capabilities with a USDA Food Supply Chain Guaranteed Loan.      

Zilk Plus, DBA ATX Specialty Foods, expanded their specialty food manufacturing facilities to scale their production and refinanced outstanding debt to increase their liquidity.

The Opportunity: Domestic Demand for Food Manufacturing

Demand for domestic food manufacturing has skyrocketed in recent years for a few reasons. More and more consumers are adding specialty health foods to their grocery carts, particularly those that are regionally produced and marked with ‘better-for-you’ labels like ‘organic’, ‘non-GMO’, and ‘gluten-free’ certifications.

Additionally, the pandemic’s impact on food manufacturing and food supply chains shifted the demand from goods produced overseas to food products made and packaged in the United States.

This demand created an opportunity for American businesses to serve more domestic clients while solving some of the inefficiencies caused by broken global links in the chain.

Already a successful of sauces, dips, spreads, condiments, and dressings for several regional restaurants in the Southwest market, Zilk Plus Resources had a unique opportunity to expand its contract manufacturing business and grow into a highly profitable Restaurant/Food Service Industry.

The company would be able to diversify its revenue and capture more of its market share if it could increase manufacturing capacity. Access to growth capital could help them make the most of the opportunity to dominate in a growing sector while playing to their strengths as an innovative manufacturer.

The Challenge: Securing Capital for New Equipment, Debt Refinancing, and Working Capital

Zilk Plus Resources was quickly reaching its capacity. The company needed over $4 million in new cooking and packaging equipment to keep up with its aggressive growth plans. The planned expansion was expected to handle growth resulting in up to $50-70 million in annual revenue.

Outstanding financial obligations made it difficult to access the funds needed to ramp up the expansion. The company still needed to invest in other lines of business throughout the expansion, and existing debt restricted access to capital that could have been used to fund the expansion.

The Solution: The USDA Food Supply Chain Guaranteed Loan Program

The USDA responded to food supply disruptions with the USDA Food Supply Chain Guaranteed Loan Program. This financing program was created to nurture domestic food manufacturing and distribution, fostering job growth while solving inefficiencies in outsourced food production that threatened inventory shortages across the country.

This loan program is eligible to be used for any business that is starting or expanding their operations to support middle-of-the-chain activities. Facility expansions like the one Zilk Plus Resources planned are eligible under the USDA Food Supply Chain Guaranteed Loan Program.

West Town Bank & Trust’s USDA lending team helped the company access $4.1 million in food manufacturing financing.

USDA Business Loan Program Utilized:

$4.1 MM – Food Supply Chain Guaranteed Loan Program
The Result: Increased Capacity Helped Secure Their Place as A Leader and Dominant Manufacturer in the Industry

The $4.1 million helped finance the expansion of an existing contract manufacturing facility, including the purchase of a significant amount of specialized equipment. Funds were also used to refinance existing debt, helping the business free up capital so that they could re-invest back into their growth.

Ultimately, the loan helped this business capitalize on an opportunity to grow its market share while freeing up cash flow for the business to pursue additional ventures as it grew.

What would you do with affordable capital?

Check your eligibility for the USDA Food Supply Chain Guaranteed Loan Program:

Step 1 of 8

Name(Required)