Strategic advice | July 2024 Paving the way to growth for an infrastructure innovator

• Willow Designs had outgrown its 5,000-square-foot manufacturing space.
• Jerod purchased land for a new building but needed a loan to begin construction.
• Roadblocks with a conventional loan required Jerod to find other funding.
• A lower-than-expected appraisal triggered the need to raise additional capital.

• Truist provided education and information about SBA loans and their terms.
• Brian’s team advised Jerod on how to improve collections to raise money for a down payment.
• Brian helped Jerod avoid having his vacation home held as collateral.
• Truist provided support and advice throughout the loan process.

An invention that came about like so many do—out of necessity—was the launchpad that helped Jerod Willow start Willow Designs. By 2005, most state DOTs required roadways to be built using a notch wedge joint to create a strong bond between lanes of roadway. Paving crews, like the one Jerod was working on at the time, needed an easier way to create it. So, Jerod designed and built the Notch-Wedge Safety System—a paver attachment that’s safe and simple for crews to connect and remove.

“I came up with a general design, and it took about three iterations to get all the kinks worked out,” says Jerod.

In 2007, Jerod was using his invention on the job. When a colleague saw it and asked Jerod to build one for his crew, Willow Designs was born.

In addition to the Notch-Wedge Safety System, Willow Designs also sells rollers, gauges, inserts, and other paving equipment attachments. Jerod and his small team custom fabricate all Willow Designs products, and Jerod offers on-site training and consultation to ensure his clients meet the safety standards required by their state or province. 

Jerod started Willow Designs in a freestanding garage on the same property as his personal residence, but by 2021, business was booming and the 5,000-square-foot space was getting cramped. Jerod bought a tract of land with existing funds—and big plans to build a larger facility—then turned to his Truist relationship manager, Brian Caden, for help with a construction loan.

The two first met in 2016 when Brian was a branch manager and Jerod was a new small business owner. Just when Willow Designs had grown enough to benefit from working with a business banking partner at Truist, Brian took on a new role as a relationship manager with Truist’s Commercial Bank.

Early on, Brian advised Jerod on establishing an LLC, set him up with a business line of credit, and advised him on improving cash flow. So, when Jerod was ready to break ground, Brian was his first call.

“I didn’t look at anybody else for the construction loan because Brian has always been there for me,” says Jerod.

Brian realized right away that a conventional loan would prove challenging.

“That type of loan requires a 20% down payment, which would have made cash tight for Jerod after the transaction,” he says. That’s when Brian enlisted Anthony Velez, a Truist Small Business Administration (SBA) loan officer, to help navigate the SBA loan process.

Under the more forgiving terms of an SBA loan, Jerod would only need a 10% down payment. But he and Brian would soon meet another obstacle.

“The appraisal on the construction project was significantly low,” says Brian. “We were guessing it would be around $2.5 million, but it ended up around $1.8 million.”

That meant underwriters wanted more than just the new building to serve as collateral on the loan—they wanted both Jerod’s primary residence and his vacation cabin, too. Putting up two residences was a deal breaker for Jerod, so Brian and Anthony started negotiating with the SBA.

“We worked it out that if Jerod put more money down on his primary residence to build up the equity, they wouldn’t require the vacation home as collateral,” says Brian. “Jerod started aggressively collecting on his receivables and came up with $100,000 to pay down the house.”

After the closing, Jerod needed another $45,000 to fund the letter of credit before construction could begin. He made another round of collections calls, raised the money, and was finally able to break ground in 2022.

Jerod says he was glad to have Brian there to advocate on his behalf and see him through what turned out to be a stressful process.

“At one point I was so frustrated with the SBA’s requirements for the loan process, I almost pulled the plug on it,” says Jerod. “Brian kept telling me to hang tight, so I stuck in there and we got it done. It was nice having him there.”

“My main concern was making sure Jerod knew I was with him every step of the way,” Brian says. “Whenever there were conference calls—with construction managers and other individuals and Truist teammates—I was on them. Whether I needed to be or not wasn’t important. I wanted Jerod to know I was there for him.”

Willow Designs’ new 15,000-square-foot headquarters is triple the size of the company’s previous space. The new setup gives Jerod and his team ample workspace to fulfill his commitment to quality.

“We don’t follow a traditional assembly line process. One fabricator completes a project from start to finish. I feel we get the best quality that way,” says Jerod. “And because we’re such a niche company, I’m more concerned about the quality than the time it takes to build the product.”

The company’s new, more visible location—on a highway with access to two of the state’s major thoroughfares—will also open up the possibility of more retail clients who need metal fabrication, which can provide an additional revenue stream for Willow Designs. But with only two competitors in the United States, Jerod says his asphalt paving products will continue to be his main source of business growth.

“Hopefully, by 2024 we’ll add clients in all 50 states and a few more provinces in Canada as well,” he says. “I believe we’ll change asphalt construction worldwide. It’s just a matter of getting onto that global stage and having people recognize what we’re doing.”

“I absolutely believe he’ll get there,” says Brian. “As an owner, Jerod is very much in tune with his business. He’s responsive to his clients and provides incredible customer service. That goes a long way.”