VALPARAISO | Competitors of J and N Enterprises always had a card to play if customers seemed to be leaning toward the Porter County producer of gas-detection products.

"They would say, 'Oh, of course, you know those things they sell are built in a barn out in the country somewhere,'" J and N Enterprises President Scott Kleppe said.

But competitors can't say that anymore.

Three years ago, with help from Regional Development Co., J and N Enterprises moved to a new 16,000-square-foot, state-of-the-art facility in Valparaiso's Eastport Center.

Standing near a static-free workbench in the plant's squeaky-clean production area, Kleppe said that without the help from Regional Development Co., the move could not have happened.

Competitors still might be playing the hayseed card with his customers.

"People can say it's just a building, but it's not. It actually creates an attitude for us and our customers," Kleppe said.

Business helper sees own growth

The Regional Development Co., which has spurred growth at more than 442 small businesses in the region since 1994, also is experiencing impressive progress since restructuring late last year.

In the first eight months of this fiscal year, it has loaned $15.5 million to small business throughout the region. That compares to $14.5 million all of last year.

Regional Development Co. restructured in part to make sure it is ready for a wave of small business expansion taking place in Northwest Indiana, according to President and Executive Director Tony Rodriguez.

"Because large companies like BP are investing and expanding, it creates a ripple effect in the economy," Rodriguez said on a recent morning at the company's Portage headquarters. "It's small businesses that sustain big business."

No nightmares, just investment

Regional Development Co. specializes in Small Business Administration 504 loans. It is one of five community development companies in Indiana authorized by the SBA to offer the loans.

A 504 loan provides businesses with specific advantages over standard commercial bank loans and even other SBA loan programs.

The advantage most cited by business owners is the low down payment of 10 percent. Second is the below-market, fixed-interest rate, currently 6.68 percent. That rate can save a business tens of thousands of dollars during the life of the loan.

The 504 loan finances 40 percent of the project cost. The other 50 percent is financed by a traditional bank loan as part of the financing package.

Small businesses can borrow up to $2 million under the 504 program if they meet certain criteria and up to $4 million for certain manufacturing projects. Recent 504 loans made by Regional Development Co. ranged from a low of $92,000 to a high of $617,000. That means total loan packages ranged from $207,000 to $1.39 million.

"The first thought in people's mind, they hear SBA, they think paperwork nightmares," said Rodriguez. "And we exist just because of that."

Regional Development Co. can close a loan in as little as 10 days after receiving the initial paperwork, he added.

From little acorns, a mighty oak

J and N Enterprises provided $112,711 in equity to secure its 504 loan package. The 504 loan itself came to $423,013. Chase bank provided $566,987 in financing.

That down payment and the interest savings has allowed J and N Enterprises to put money back into the business, Kleppe said.

The new building in turn made it possible to obtain ISO certifications and certain European and Canadian approvals that will allow it to further expand exports. The company was named SBA's Indiana Exporter of the Year for 2006.

"Entrepreneurs at this level need to think of what their plan is can they get it done," Kleppe said.

He sees J and N Enterprises' rapid progress as a tribute to the company his parents built. Nancy and the late John Kleppe started the company 27 years ago as a part-time, home-based business.

Today, J and N Enterprises is one of the top three U.S. producers of gas sniffing equipment used by fire departments, major utilities and other industries around the world.

504s churn out jobs

The 504 loans also have what seems like a modest job creation/retention requirement of one job created for every $50,000 borrowed. But for many small businesses, that can mean a 25 percent or greater increase in work force.

According to Regional Development Co., the 504 loan program has assisted in creating 4,244 jobs in the region since 1994.

J and N Enterprises has added 10 employees in just the past three years, according to Kleppe. It now has 36 employees in Valparaiso and four more worldwide. Average production wages are in the $12 range and some engineering jobs at firm pay into the six figures, Kleppe said.

The company president expects to keep that hiring pace up as revenues have grown 15 to 20 percent every year since the move.

Many J and N Enterprises employees have worked for the company since the days on the Kleppe homestead. They are a big reason for the company's growth and a key to product quality, Kleppe said.

Taking a break in the plant's production area a few weeks ago, 27-year employee Gerry Ranalli seemed almost wistful for the smell of hay at the Kleppe homestead.

But when it comes to comfort, and getting the product out, the new place can't be beat, Ranalli said.

"We did a good job there, but this is 100 percent better," she said. "Here we have everything we need. ... It's just made production a lot more efficient."

Title: Tony Rodriguez Date: Regional Development Co. prez has helping hand for small biz PLAY »