GSBDC Finances Purchase of Additional Facility for Cryomech, Inc.

Posted 06.01.11

Loan: SBA 504

The Greater Syracuse Business Development Corporation (GSBDC) recently provided a $330,000 SBA 504 loan to Cryomech, Inc. (CM) for the purchase and renovation of an existing manufacturing facility at 127 Falso Drive, Syracuse, NY.  The purchase will assist the company with its efforts to improve efficiency and productivity for their existing operations located next door at 113 Falso Drive, Syracuse, NY.

Peter Gifford, majority owner of Cryomech, Inc. expects that one of the benefits of the expansion will be to increase their exports by an additional 10%.  CM, founded in 1963 by Gifford’s father currently exports approximately 60% of their  cryorefrigeration equipment world-wide.  Their cryogenic cooling systems are widely used in MRIs, generators and laboratory cooling units for exotic gases such as helium and nitrogen.

The financing involved the purchase of a 17,425 sq. ft. building renovated to serve as the warehousing, shipping and receiving facility for CM.  They also moved their machine shop, finance and HR departments to the new location.  The renovations included an upgrade to the electrical service, replacement of doors and windows, and new lighting, fire and security systems.

The SBA 504 program provided a 20 year fixed rate second mortgage on the project with M & T Bank providing financing in a first mortgage position.  Tadd Helmer, Vice President, Business and Professional Banking at M&T Bank commented, “Cryomech sells state of the art cryogenic equipment throughout the world.  It is extremely gratifying to have a globally renowned business such as this located here in Central New York.  M&T Bank is pleased to be able to provide the benefits of the SBA 504 loan program to this business.”

Upon acquisition of the new building, CM hired ten new employees to ramp up for the expansion, and currently employs 86.  They expect to create an additional 10-15 jobs over the next three years as a result of this project.