Tee's Plus says loan helped it weather downturn

A Groton-based screen printing and embroidery plant hosted U.S. Rep. Joe Courtney on Thursday to thank him for his support of a program that provides federal backing for business-related loans.

Tee's Plus, which produces screen printing, embroidery and promotional products for an array of corporate and civic clients, said the federal Small Business Administration's loan-guaranty program was essential for the firm's financial turnaround.

Allen Graham, the company's president and chief executive officer, said the recession's effect on companies such as his was profound, but he said the employee-owned firm received a key bank-lending package that has provided a financial shot in the arm to the rebounding manufacturer.

"It's been a terrible (past) two years," said Graham of the Great Recession's effect on the economy and business. "But we're making a great recovery."

Tee's Plus has received a $4.7 million refinancing package from the Bridgeport-based People's United Bank, which includes a $1.2 million revolving line of credit and a $3.5 million term loan. Graham said the refinancing, which is backed by the U.S. Small Business Administration, has provided the financial fuel needed for the company's turnaround.

"Our ability to refinance ... allowed us to start over and survive and prove that manufacturing does live well in Connecticut," Graham said. He said the firm's success was directly attributable to its 52 dedicated employees, who are also its owners through an employee stock ownership plan, or ESOP.

Courtney said he was impressed with the plant's growing production and its ownership status. "There's no question that as a nation, we've gone through some challenging times here," Courtney told Tee's Plus employees gathered during his tour. "But even in the toughest of economic times, you came together," he said.

The 2nd District Democrat said the SBA loan-backing program is vital to business and is a perfect example of the public and private sectors working together to help grow business and the economy. He also applauded the recent expansion of the SBA lending-guaranty program, which he said was necessary for small businesses recovering from the recession.

Under the program, the Small Business Administration doesn't make direct loans to business but does set lending guidelines for lenders who actually provide the financing. The agency instead guarantees that SBA-backed loans will be repaid, which eliminates some of the risk taken on by the lending agency, typically a bank.

Courtney applauded Tee's Plus ownership structure, saying employee-owned firms are an important component of this state's business community. "I can see in person right here that an ESOP works," he told the employees.

The Tee's Plus plant covers nearly 40,000 square feet along Route 184 in Groton, including administrative offices, an arts and graphics shop, warehousing, screen printing facilities and an embroidery shop. The firm annually produces nearly 3 million shirts and other embroidered or screen-printed products.

Tee's Plus has a client roster that includes small business, tourism venues including the Mystic Seaport and Mystic Aquarium, and corporate clients such as Mohegan Sun, the Foxwoods Resort Casino and the East Hartford-based Pratt & Whitney. In addition, the company is one of only two vendors in the country providing gear to the DARE (Drug Abuse Resistance Education) youth program and also provides products for the University of Connecticut and a host of other schools and colleges.

a.cronin@theday.com