Lately, times have not been easy in the Bakken region. Oil activity was already slowing down before the COVID-19 pandemic hit. For many, it felt like the rug was pulled from underneath them. For those with longer memories, comparisons to the last slowdown were unavoidable.
Of course, this boom was different. Fracking was the primary driver of the recent boom resulting in the creation of hundreds of new businesses supporting oil exploration. Chief among these businesses are those providing companies with water services. Some businesses didn’t make it. They had no choice but to close down. Others decided it was time to sell. And some looked for opportunities to stay afloat.
Busy Bees Hot Oil Incorporated was one of those who saw an opportunity. The company was founded in 2012. Richard Ceynar, an Iraq War veteran, purchased the business in 2015, which provides hot oil, saltwater disposal, fresh water delivery, well site cleanup, flowline flushing and tubing, water hauling, and spill clean up services. Earlier this year a competitor business came up for sale and through the SBA 504 Loan was able to purchase the company.
“We work with First International Bank in Watford City. They steered us to the SBA 504 Loan and Lewis & Clark Development Group,” says Ceynar.
“Everything was processed within two weeks. We closed on the deal and two weeks later COVID shut everything down.”
Ceynar admitted that there was some uncertainty. He had doubled his workforce at a time when oil prices were plummeting.
“We had to be a little creative. We spread the wealth a bit by reworking schedules so everyone could stay on. We reached out to oil companies that were shutting down wells and offered to service them. We hope when the wells reopen they’ll come to us,” added Ceynar who says production is starting to pick up again.
“The whole process was seamless for us. We were very pleased.”
Tracy Whitney, LCD Group SBA 504 loan officer, says one of the strengths of the SBA 504 Loan is its flexibility, especially for asset purchases like those made by Busy Bee’s.
To learn more about the SBA 504 Loan program, visit us online or contact Whitney at (701) 667-7602 or at email@example.com.