Unified Services Inc., a $6 million-a-year, minority-owned janitorial and maintenance service, soon will get a new home thanks to a loan package put together by the D.C. Officer of Business and Economic Development.
The package, which consists of a $280,000, 20-year mortgage from Riggs National Bank and a $224,000, 25-year loan from the Small Business Administration, will enable Unified to purchase a building at 2640 Ninth St. NE in which to consolidate its operations, which now are run out of three rental locations. The SBA loan will be made through the District's Local Development Corp.
The loans will mean the District will keep the $40,000 a year in tax revenues and 350 jobs that Unified Services provides. It is estimated the company will save about $50,000 a year in rent by purchasing the building for $560,000.
The National Development Council, a private group partially funded by the Department of Housing and Urban Development and the Economic Development Administration, assisted in developing the loan as part of its Neighborhood Business Revitalization program. Both loans will carry a below-market interest rate of about 12.5 percent each.
According to Pamela Vaughn-Cooke-Henry of the D.C. Office of Business and Economic Development, the loan package took about five months to assemble. The District arranged eight such loans last year, which are designed to help healthy businesses expand by providing long-term financing at favorable rates, she added. "We are not interested in bailouts," she said.
Revenues at Unified Services and its two subsidiaries, Unified Refuse and Consolidated Suppy, grew from $2.3 million in 1977-78 to about $6 million last year. The firm began as a subsidiary of Unified Industries and became an independent company in 1972. Its main lines of business include maintenance of buildings and furniture in office buildings, hospitals and government buildings.