Scott Valley Bank’s ABL division, SVBusiness Capital, provided a $400,000 term loan to a Calaveras County, CA-based company for acquisition of a snow removal business.

The company will integrate the area’s largest snow removal business into its existing snow removal and logging operations. The integration will enable the company to utilize some of the heavy construction equipment during the warmer months, deploying those assets at their logging and construction venues.

The several hundred prepaid snow-removal contracts provided additional cash stability, especially during the logging off-season, making the acquisition accretive.

“Combining the existing positive cash flow with the new contracts along with the hard asset values made for an attractive lending relationship,” said Kevin O’Hare, president of the ABL Group. “We are delighted to partner with a long-tenured and successful company, particularly as they grow their public-safety revenue streams.”

“The opportunity to acquire the business on such short notice and to close it prior to the snow season was critical. However, dealing with Kevin and his team was relatively painless despite the many moving parts, multiple entities, deadlines, as well as the regulatory requirements and notices in order to properly complete the bulk sale transfer,” said Ron Glass, the founder of Ronwright Logging Lumber Construction.