In most businesses that make a product, the item usually can be designed and into production in a short time.
But when you're dealing with plants, their growth occurs rather slowly. Thus, anyone in the business of wholesaling plants to nurseries, other wholesalers, landscape architects or contractors knows that timing is important so the plants are ready when needed.Such is the situation at Progressive Plants, 9180 S. Wasatch Blvd., a 4-year-old company nestled next to the Wasatch Mountains among some subdivisions of higher-priced homes.
Officials at Progressive Plants just completed negotiations for a loan that will be used to build some more greenhouses and install sprinkler systems. Steve Pendleton, president, believes there is a big market for native plants (those indigenous to an area) and wants to have the plants ready when needed for planting.
The nearly $500,000 financing package was arranged by Deseret Certified Development Co., the authorized agent for Small Business Administration 504 loans in Utah. Howard Bird, DCDC vice president, said Progressive Plants' unusual assets made it difficult to obtain total financing with a conventional lender.
The company has a $252,000 SBA-guaranteed loan from United Savings Bank. Uniwest Business Credit, a division of United Savings, provided a $100,000 line of credit, and $125,000 came from Salt Lake County's Economic Development Loan Fund, a program available to expanding businesses in unincorporated areas of the county.
Pendleton, Edward Simonich, vice president, and his wife, Janet Simonich, secretary-treasurer, said they will use the money to gradually develop their leased five acres to 25 acres where native plants can be grown and shipped.
The company has six full-time employees, but that could double when the expansion is completed.
During the spring and summer, several local youths are hired to water the plants and ship them to Idaho, Wyoming, Colorado, Nevada, California, New Mexico and Arizona. They have 500 different species of native plants ranging in size from those barely 2 inches high to large trees with their roots wrapped in burlap bags.
Progressive Plants is more than a place where plants are grown; it is a place where Edward Simonich is trying to develop superior strains of plants so they get along with less water in arid areas and can better withstand disease. Pendleton frequently consults Western state highway department officials to determine what species to include on projects and how to use them.
Pendleton has been in the nursery business for 22 years, starting with Engh Floral in 1968. Fourteen years ago Edward Simonich started with Engh Floral, and in January 1977, Pendleton was appointed manager of Native Plants Inc., the only company producing native plants on a large scale.
In October 1977, Simonich left Engh and started with Native Plants as the production manager. Janet Simonich started with Native Plants in June 1981 and later became sales manager.
Pendleton said when he started with Native Plants, the company had $90,000 in sales and that ballooned to $5.8 million in 1985. Four years ago, Pendleton and Edward Simonich quit Native Plants and started their own business on five acres near Pendleton's house in Draper.
Once Native Plants' lease on the Wasatch Boulevard property expired two years ago, Progressive Plants moved to the site, and the recent infusion of money is the first outside funds it has had. Progressive Plants now has five of Native Plants' former employees.