Taylorsville Company Adds New Grain Elevator

Press Release

As Phil Newton watches the 2009 harvest come into Richards Elevator in Taylorsville, he knows that the timing was right to expand the elevator that he co-owns with his son, operations manager Jason Newton.

“We are having a big harvest this year. This weekend was huge,” Phil Newton said Monday (Nov. 16)

“We needed to get bigger to meet the demands of our customers and grow our sales,” says Phil Newton. “And the cost of construction was very good right now.”

First Financial Bank of Columbus and Indiana Statewide Certified Development Corporation provided financing for Richards Elevator from the U.S. Small Business Administration (SBA) 504 program for expanding businesses.

Indiana Statewide CDC works with local lenders to issue SBA 504 loans. Congress created the SBA 504 program to help small businesses gain favorable financing terms and retain operating cash while expanding. Indiana Statewide CDC has helped create or save more than 27,000 jobs in Indiana with SBA 504 loans since 1983.

Newton says, “The SBA 504 loan gave First Financial Bank the ability to service the loan with the Indiana Statewide CDC as a partner. It also gave us an opportunity to lock in a low interest rate that will be very favorable to the elevator in the years ahead. The 504 loan was very instrumental in allowing us to secure the loan to expand our business at a time when many businesses are not expanding.”

The Newtons expanded Richards Elevator by building a new grain elevator about one mile south of the existing building.
“Our older facility is now dedicated to soy beans and non Genetically Modified corn (non GMO). This expansion has helped us to take in more soybeans and non GMO corn and therefore we are able to service the local producers with this expanded capacity,” Newton says.

Four persons are employed at Richards Elevator in addition to owner/operator Jason Newton. One of the employees is new since the expansion and one more person will be hired next year.

The Newtons have owned Richards Elevator since 1999. They are the fourth owners, counting school teacher Frank Richards, who bought the elevator out of bankruptcy in 1908.

Richards Elevator purchases corn, soybeans and wheat from local farmers and resells it to companies that produce bio fuel, nutritional food products for animals and bourbon.

Newton says,” The harvest is good; grain is coming in at a good pace. Early-season moisture and cold temperatures have damaged some of the grain, but yield seems higher. Our customers – the area farmers – seem pleased with our new elevator and the fast turnaround time so they can get back to their fields.”

Craig Lichtenberger of First Financial Bank says, “Richards Elevator is a local landmark and, even more important, it is vital for our local agricultural economy. We are pleased that the SBA and Statewide CDC acted so quickly on their loan request and we were able to help the Newtons add to their business.”

Executive Director Jean Wojtowicz says that the Indiana Statewide CDC has invested $403 million in 1067 Indiana companies since 1983.

Source: Richards Elevator