President's Remarks

Success Story

Lender's Corner

News Highlights

Employee Spotlight

Partner Page

Loan Approvals

Current Loan Rates

Contact Us

NYBDC.com

Schall Paint & Hardware

Borrower:	Scott Mackles
Where:	Yonkers, NY
Banker:	Nicholas Centorani
Bank Partner:	M&T Bank
NYBDC Loan Officer:	Thomas K. McHale
Loan Type:	SBA 504 and SBA 7(a)
Total Financing:	$512,000

For the past 25 years, Scott Mackles operated Academy Hardware Inc. in Manhattan, a store that was founded by his family in 1975.  He prided himself on providing excellent customer service that resulted in a very loyal customer base who knew they would find what they needed each time they entered his store. But, Manhattan rents continued to increase and his landlord insisted on a month to month lease.  As a result, remaining profitable became increasingly more difficult and Mackles didn’t have the security he wanted, so he began looking for a new location. “It was very hard for me,” Mackles said, because he knew his customers would be upset that he was moving out of the neighborhood. “But it was the right thing to do.” 

Mackles learned of another long-time family owned hardware store located a few miles away in Yonkers that the owner was considering selling so he began investigating. Schall Paint & Hardware Co., Inc. was formed in 1930 and operated as a general hardware store with a specialty in plumbing and electrical supplies.  The founder’s son was looking to retire and sell the business.

“There is an economic renaissance happening in downtown Yonkers and I knew that growth would be good for business,” Mackles said. 

Yonkers has four and a half miles of majestic Hudson River shoreline that provides a spectacular natural resource, and the city has implemented a plan to revitalize and better utilize the waterfront area.  The resulting activity has created an economic opportunity that has greatly benefited businesses involved in the construction industry. 

As Mackles was contemplating purchasing both the building and the business and was considering financing options, he was referred to Empire State CDC: The 504 Company by Ross Weale of the Business Council of Westchester.  NYBDC has a strong interest in assisting in the economic development and revitalization of Yonkers and so the fit was a natural one.   

Empire State CDC loan officer Tom McHale worked with Mackles to put together an appropriate financing package after determining that Mackles was a good candidate for the program.  “I have no doubt that he will do very well in his new location,” McHale said of Mackles.  “He knows the hardware business well and he understands the competition he has from the big box stores.  He offers excellent customer service, like a ‘Mom and Pop’ store, and ensures that someone is at the front of the store to greet each customer who enters and help customers find just what they are looking for.” 

McHale and Nicholas Centorani, vice president/business banker at M&T Bank, put together a loan package that included a $242,000 SBA 504 loan for the purchase of the building and a $270,000 SBA 7(a) loan for the purchase of the business. 

“We believe strongly in helping small businesses,” said Centorani, “and it was great helping Scott in an almost David and Goliath type battle to keep serving customers despite competition from the larger hardware stores.” 

On January 8, 2008, Mackles opened the doors to Schall Paint to greet customers as the new owner.  He said the transition from his former location was a smooth one and many of his loyal customers decided that the service they receive from Mackles and his staff is worth the 20 to 25 minute drive to the new location; he’s been able to continue serving them, work on building new accounts and grow some of the preexisting Schall Paint & Hardware accounts. 

With all that potential for continued growth in sight, and with a monthly payment that is one-half to three-quarters of what it was when his business was located in Manhattan, Mackles said he made a great decision to move to Yonkers.  

“I can’t say enough good things about the assistance Nick Centorani gave me,” said Mackles.  “He provided me with a lot of guidance and made sure I had all the paperwork in place when it was due. And Tom McHale was great, too. It was so helpful to know they both had worked with the SBA previously and understood the process.”