Ace Hardware is making moves to further encourage members to build and expand.
Under a new financing program for Ace Hardware store owners announced on Friday, members will now be able to receive up to $200,000 in a dollar-for-dollar equity match loan for opening a new ground-up store or acquiring a competitor’s store.
These loans can be repaid immediately using the owner’s existing Ace Hardware Corporation stock or over time using future non-cash patronage distributions (rather than with cash). Ace store owners are exclusive shareholders of the company, and a percentage of all wholesale goods purchased by a store through the Ace supply chain is returned to the owner each year in a patronage dividend. This amassed stock can be used to repay the loan, allowing Ace stores to leverage the equity of their existing stock to boost their growth.
“With this exciting announcement, Ace Hardware store owners now have even more resources to help them achieve their goals of expanding their businesses,” said Dan Miller, Vice President, Retail Operations and New Business, Ace Hardware Corporation. “In the last three years, new ground up stores at Ace have reported a nearly 99% success rate, and the average store is yielding sales per square foot of $138/ft. in their first year – it’s an exciting time to be growing with Ace.”
The new financing program is available to qualified, existing Ace owners with two or more stores, and all Pinnacle-achieving Ace retailers, both single-store and multi-store owners.