■ Family Business
Continued From Page 10
BANKING
Valley Bank
By Josephine Savastano,
Executive Vice President,
Chief Lending Officer
In 2014, Valley assisted a busi-
ness started in 1980 by a father
and son that had since brought in
the next generation and expanded to serve addi-
tional markets. With growth came the need for
a larger building. The SBA 504 program allowed
the company to put down 10 percent, which
freed up cash flow for new equipment and ex-
pansion plans. The bank and SBA financed the
other 90 percent. When the company needed to
purchase machinery and equipment in 2016,
the bank provided them a $2MM guidance line
of credit with flexible financing and competitive
pricing. More recently, in 2018, the company
was looking to make their first acquisition, so
Valley assisted them in refinancing their first
mortgage and using the cash-out funds of the
mortgage to purchase their competitor. The
company continues to thrive and not only grow
their business, but provides existing customers
with high quality and efficient services through
two facilities.
LAW
Chiesa Shahinian &
Giantomasi PC (CSG)
By Steven A. Loeb, Esq.,
Member,
Trusts & Estates Group
Operating in today’s uncertain
and tumultuous business cli-
mate and having to cope with changes in tax
12 COMMERCE www. commercemagnj.com
law and the dynamics of business succession,
family business owners seek flexibility and
foresight from their legal counsel. Further-
more, given the amount of private equity in
the market, making decisions on acquisitions
and sales and protecting the business from
creditors and predators is critical. Against
this backdrop, several strategies have proven
invaluable to our clients—including rollover
equity transactions in cases where clients are
interested in selling parts or the whole of
their family business on a tax-deferred basis
but wish to maintain some connection with
the business; developing SERP/stock bonus
plans to retain key employees; and creating
trusts to ensure that the business can be
transferred without significant tax implica-
tions as well as ensuring that the business
remains in the family bloodline. Tactics such
as these have helped ensure the continui-
ty and prosperity of several of our privately
held, family-owned clients.
Continued On Page 14