GROSSMAN TOURS WAKEFIELD BUSINESS AIDED THROUGH LOAN PROGRAM
Paul K. Guillow, Inc. to Create Six New Jobs Through Equipment Purchase
Treasurer Steven Grossman today toured Paul K. Guillow, Inc, in Wakefield, a world leader in the production of toy aviation models and a recipient of a $110,000 loan made by The Savings Bank of Wakefield leveraged through the Treasury’s Small Business Banking Partnership. Guillow’s used the loan proceeds to purchase a new automated precision frame saw, which company officials estimate will enhance business operations and create six new jobs.
“Guillow’s started as one man’s dream, and today it has flourished into one of the world’s most recognized aviation model manufacturers,” said Grossman. “That’s what the Small Business Banking Partnership is all about – investing in good business ideas, fostering opportunity, growing companies, and creating jobs.”
The Small Business Banking Partnership moves Treasury cash reserve funds typically held by large national and international financial institutions and deposits them in amounts of up to $10 million in Massachusetts banks. In exchange for the infusion of new deposits, the banks sign a Memorandum of Understanding (MOU) signaling their intent to enhance their loan portfolios to small credit-worthy Massachusetts businesses.
Guillow’s had its beginnings as Nu Craft Toys in 1926 when it was founded by Paul K. Guillow, a World War I U. S. Navy Aviator. As national interest in aviation began to increase, Guillow found strong demand for his model airplanes, and the business which started in the barn of his family home was soon moved to the second floor of a downtown Wakefield service station. In 1933, the company was rechristened as Paul K. Guillow and was moved to its present location at 40 New Salem Street in Wakefield. Guillow’s has been run by Thomas Barker since 2009.
"Guillow’s has been a fixture in Wakefield for over 85 years, and this loan from The Savings Bank of Wakefield will help us continue to be in the forefront of the model aviation field," said Tom Barker, President of Guillow’s. "The Small Business Banking Partnership and the loans that it helps leverage have proved to be very helpful for small businesses and the thousands of jobs that they create across Massachusetts."
The Savings Bank, headquartered in Wakefield with nine branches throughout the north-of-Boston region, recognized Guillow’s as a well-established local manufacturer when extending the loan. The bank, which prides itself on community involvement and investments in small business enterprises, has been in operation since 1869.
“TSB Commercial Group is honored to be part of the Small Business Partnership which allows our customers a lower cost of borrowing which in turn allows them to create more jobs. Guillow’s is a great company which creates jobs locally but their gliders and models create lots of fun for kids…and OK, adults too… across the globe,” said Lawrence Andrews, Senior Commercial Banking Officer of The Savings Bank. “It is a great gift and quality manufactured right here in Massachusetts.”
All deposits that the Treasury makes in these community banks are protected through either insurance or collateral, and the interest rate on the money is comparable to what the Commonwealth receives at out-of-state financial institutions.