Manufacturer SBA Loan

An SBA Success Story

Despite Devastation Company Maintains Strength
“Great Employees Help Company Recover”
Southern Fastener, LLC
William & Dara Chinnis

Southern Fasteners was started 47 years ago. This business has been in operation at the same location for 42 years. Two years ago, it was purchased by William Chinnis. 

When Mr. Chinnis realized that Hurricane Katrina was aimed at their area, he knew that they had only a day and a half to prepare for the storm. They had survived Hurricane George so, they thought they knew what to expect. Hurricane George had been the worst Hurricane in recent memory, and it had flooded the business with 32 inches of water. 

Prior to Katrina hitting the area, they closed the business, and each employee was assigned a different responsibility in preparation for the hurricane.  Mr. Chinnis knew that the Hurricane would bring high levels of water, so, all of the electronic equipment and files were placed on top of cabinets and in storage areas well above the high water mark from Hurricane George.

The inside of the building sustained the majority of the damage while the outside sustained mostly wind damage. This time, the building was flooded with six feet, eight inches of water.  The computers and the other equipment that had been so carefully stored were ruined.  The records of the business were also destroyed.  Water marks remain on the walls, to remind everyone of the extent of the damage.

Hurricanes had affected this area before.  After Hurricane Ivan, “our customers were out of business for weeks” but, their buildings were still in operation. This area took a really hard hit. ”This is the worst storm we have ever experienced.”

Mr. Chinnis recalls, “we came back on Tuesday (after the Hurricane) and everything was devastated.  It wasn’t just the water, but the salt water, which caused even more damage.  As bad as it was, the company had something to come back to.  People to the west of us didn’t have anything.” 

None of the employees were laid off. They came in to work and they “helped us clean up the building.  “We kept them on the payroll, even though the company had no customers and no sales.  We have good employees, all of whom went well above the call of duty to help get everything back in shape.  The employees had a lot to do, in spite of the fact that the company was unable to operate.   They are pretty close and helped each other out.”

The company sustained almost $2 million in damage, including the loss of its inventory, trucks, and forklifts.  The business had purchased a new piece of equipment, had only used it once, and it was lost to Katrina. 

Southern Fasteners applied for an SBA loan to replace its machinery, equipment, and inventory. “Without the SBA loan, the company could not have survived.” 

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