TTCA Announces Universal Projects, Inc. Receives Prestigious Achievement Award for Trade
SACRAMENTO, Calif.--June 5, 2002--The California Technology, Trade and Commerce Agency (TTCA) announced today that Universal Projects, Inc. of Gardena, California received the prestigious 2002 World Trade Week Export Achievement Award from the Los Angeles Area Chamber of Commerce. The award recognizes Southern California companies for outstanding, consistent success in exporting over the past few years.
Universal Projects has received assistance since 1999, in the form of loan guarantees administered through the TTCA's California Export Finance Office (CEFO). The company used a combination working capital loan guarantee totaling $450,000 to export customized vehicles for sale to Japan. The CEFO loan guarantee has generated $5 million in California export sales for the company.
"I congratulate Universal Projects, Inc. on receiving the World Trade Week Achievement Award," said TTCA Secretary Lon S. Hatamiya. "CEFO's loan guarantee program continues to demonstrate why it is considered one of the premiere state programs in the United States, and is the recognized model that other states are trying to emulate."
CEFO promotes the sale of California exports by providing guarantees to financial institutions so their loans to California exporters will be repaid if the exporter defaults. CEFO helps small- and medium-sized businesses acquire working capital to finance their export transactions that would otherwise strain their cash flow. This capital is not supplied to the exporter. Rather, CEFO evaluates a company's eligibility and acts as guarantor, or advocate for a company to a bank.
"CEFO's program has been a vital part of our export business," said Kevin Iimuro, President of Universal Projects, Inc. "One hundred percent of our business is export and we have been very fortunate to have CEFO's assistance for the last several years. Without CEFO's loan guarantee, we probably could not have obtained a working capital line of credit from a local bank."
CEFO administers three types of guarantees, with all three guaranteeing 90-percent of a loan. CEFO's maximum guarantee amount is $750,000, which is 90-percent of an $833,000 loan. CEFO may also co-guarantee loans with the Small Business Administration and Eximbank in the amounts of up to $1.94 million and $1.66 million, respectively.
Last April CEFO enhanced services, by consolidating and simplifying the fee structure exporters pay to get a loan guarantee. These fees were also lowered for applicants seeking a six-month loan guarantee.
Since its creation in 1985, CEFO has guaranteed more than $324 million in loans to California exporters. This created 24,000 new jobs and $2 billion in export revenue for California. California is the leading export state in the nation, with a $1.4-trillion economy, ranking it the fifth largest economy in the world.
Universal Projects, founded in 1992, primarily converts and customizes vehicles that have attracted growing demand in Asia. In addition to vehicle van and truck conversions, the company expanded into the luxury automobile and sports car market, as well as the automotive parts and accessories market. With the growing need for originality and diversity in the automotive aftermarket industry, Universal Products launched the Majestic-Universal brand of conversion vehicles, automotive parts, and accessories that catered to customers in search of unique and innovative products. Due to the success of Majestic-Universal, the company expanded into other industries such as the vehicle fashion accessories market. Universal Products' current project involves a system that will assist in the preservation of the environment. With the urgency for environmental preservation, the company is helping to develop, manufacture and produce a Compressed Natural Gas System. This environmental-friendly System will transform trucks and automobiles into a low emission vehicle. For additional information, visit www.majestic-us.com.
Stanley T. Olafson, manager of the World Trade Department of the Los Angeles Area Chamber of Commerce, conceived world Trade Week Southern California in 1926. President Franklin D. Roosevelt proclaimed the event a national observance in 1937. Since then, the observance has grown to a widespread series of conferences, seminars, free harbor boat tours, and other international events encompassing the entire month of May throughout Southern California. For more information, visit www.worldtradeweek.com.
The California Technology, Trade and Commerce Agency serves as the state principal catalyst for innovation, investment and economic opportunity, enhancing the quality of life for all Californians.
Check out http://commerce.ca.gov for more information.