Cambridge Savings Bank Supports the Expansion of Tropical Products with a New Market Tax Credit and Loans Totaling $16 Million

Following the pandemic, Tropical Products experienced an increase in demand for local manufacturing services due to rising freight costs and associated supply chain disruption. As a result, the company was seeking a financial institution to help facilitate the acquisition of land in Salem and the construction of a nearly 100,000 square foot manufacturing and warehousing facility.

“We are extremely appreciative of the investment that Cambridge Savings Bank is making in our business and in the City of Salem,” said Edward Berman,Owner of Tropical Products. “With the high amount of uncertainty due to inflation and major fluctuations in the market right now, it would have been impossible to undertake this expansion without CSB providing us with a form of long-term and low-cost capital unavailable elsewhere in the market. Thanks to CSB’s investment, we will be able to grow Tropical Products, Inc. exponentially and create more jobs in our home of Salem.”

The total scope for development and execution of the project is $24.8 million. With the support of CSB, providing $16MM of loans; Tropical Products qualified for a New Market Tax Credit (NMTC) that provided over $5 million in equity for the project. As part of the NMTC transaction, CSB partnered with Mascoma Community Development, a subsidiary of Mascoma Bank, as the Community Development Entity (CDE) and U.S. Bank as the Investor. Additional parties integral for execution of this project were consultants Affirmative Investments, Inc. and CRR, LLP.

Tropical Products has seven automated filling lines that employ approximately 60 people, the majority of which are immigrants from more than 20 different countries that include: Haiti, Afghanistan, Vietnam, Cambodia, Pakistan, Dominican Republic, Columbia, Sudan, Honduras, and Nepal. The new building will create an abundance of new jobs for people of all backgrounds who are seeking employment in the area.

“When the opportunity arises to support a company like Tropical Products, which shares CSB’s goal of supporting our local communities, we see it as our duty to support them,” said Angela Gee,SVP, Senior Corporate Banking Loan Officer atCambridge Savings Bank. “The capital that we provided was not only an investment in the company’s growth, but also an investment in the growth of the Salem community.”

CSB’s commercial division is focused on serving the needs of their local communities and businesses, offering a full suite of Corporate Banking Lending, Commercial Real Estate Lending, Treasury Management, and Trade Services solutions.

To learn more about CSB’s custom solutions for commercial entities, please contact Michael Kuhn, Corporate Banking Senior Vice President, at mkuhn@cambridgesavings.com.

About Cambridge Savings Bank

Cambridge Savings Bank is a full-service banking institution with $6 billion in assets. As a mutual bank, CSB is committed to improving the quality of life of our employees, customers, and the communities we serve. One of the oldest and largest community banks in Massachusetts, Cambridge Savings Bank offers a full line of individual and business banking services and has branches located in Arlington, Bedford, Belmont, Burlington, Cambridge, Charlestown, Concord, Lexington, Melrose, Newton, Somerville, and Watertown. To learn more about how we can meet your needs, visit us at cambridgesavings.com, or better yet, stop by one of our branches.

About Tropical Products

From concept to development, manufacturing and filling, Tropical Products, Inc. provides you with a consistently high quality, cost-effective product that will please your customers. Whether you require a turnkey product or contract manufacturing and filling, Tropical Products’ knowledgeable staff guides you through the process, cutting costs and assuring your satisfaction every step of the way. Their 50,000 square foot FDA, EPA, cGMP registered, and USDA Organic Certified facility becomes a virtual extension of your company. For more information, please visit: tropicalproducts.com.

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KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS

INDUSTRY KEYWORD: FINANCE BANKING MANUFACTURING OTHER MANUFACTURING PROFESSIONAL SERVICES

SOURCE: Cambridge Savings Bank

Copyright Business Wire 2022.

PUB: 11/10/2022 10:05 AM/DISC: 11/10/2022 10:06 AM

http://www.businesswire.com/news/home/20221110005111/en