Freedman Seating Company Stitches a Brighter Future by Empowering its Local Community
Any successful business knows the value of creating bonds with its stakeholders—that they will reap the benefits of strong connections forged with the community, clients, employees and suppliers. That ethos has been the foundation on which Freedman Seating Company has built its 130-year-old business.
The Chicago-based manufacturing company traces its roots back to when CEO and President Craig Freedman’s great-grandfather won an honorable mention for his upholstery skills at the World’s Fair and decided to parlay that recognition into launching a business. Its initial foray was reupholstering seats for milk trucks during the Great Depression, later expanding to provide seats for light trucks. In the 1980s they pivoted to bus seats, which is when the business took off, Freedman says. “A truck might need only one seat, while a bus with more than 35+ passengers has that many more seats to upholster,” he points out.
While Freedman is proud of the company’s craftsmanship, he cites another accomplishment that’s just as valuable: the investment they’ve made in the westside Chicago community they call home and where the company has a profound dedication to making a positive impact.
A Steadfast Commitment to its Westside Roots
The area where Freedman Seating is located was previously a hub of manufacturing for prominent enterprises like Brach’s Candy Company and cosmetic brand Helene Curtis; in fact, Freedman’s current office and factory are located on the site of Motorola’s first manufacturing facility. But hard times befell the neighborhood, making the area one of the most economically disadvantaged in the state.
However, Freedman Seating Company was resolved to reinvest in the site where they moved 25 years ago. “We are now the largest employer in our ward and believe we have a responsibility as a good citizen to help this community achieve their goals,” Freedman says, adding that 85% of its employees live in Chicago, with over three-quarters hailing from disadvantaged zip codes. “Our team has focused its philanthropic efforts here and are actively working to bring jobs to the area through training and education,” he says.
Lately Freedman has seen many positive signs in the area as other companies begin to set down roots, with recent new neighbors including an Amazon distribution center, the Chicago Police and Firefighter Training Academy and even a Starbucks. “This progress might be expected in other areas, but to us these are welcome signs of life that are unusual on the westside of Chicago,” he says.
As part of its efforts to help upskill adults in the local community, Freedman Seating Company has provided roughly 7,700 square feet of space in its facility to Jane Addams Resource Corporation (JARC), which is dedicated to introducing future workers to the world of manufacturing.
Freedman Seating has hired more JARC graduates than any other manufacturing company as part of its current 650-employee roster. “It’s a win-win to be part of a cycle of providing employment opportunities for people who live in this community and spend their hard-earned dollars here,” Freedman says. “We are seeing the positive results as this community begins to rise up.”
A Creative Program Helps Finance Freedman’s Next Stage of Growth
In fact, it’s currently in the final stages of expanding its facilities, an effort where Old National Bank (ONB) has been instrumental. Freedman had been curious if they might qualify for a federal program called the New Markets Tax Credit, which funds a portion of a project through tax credits rather than capital, in exchange for a business that’s located in a disadvantaged area investing in its backyard. “It makes it possible to do a project that might otherwise be economically challenging, especially in today’s current interest rate environment,” Freedman says.
Not all banks have the capacity to facilitate NMTC deals, so he reached out to his long-time banker, Doug Banzuly, Senior Vice President and Market Executive at Old National Bank, for additional information. Having just recently joined ONB after its merger with First Midwest Bank, Banzuly had to chase down the particulars, but as Freedman says, “He picked up the ball and ran with it,” finding the right people in the bank who had expertise in the program and could help bring the deal to fruition.
As Banzuly explains, “The NMTC program is not a ‘freebie,’ per se but a diversion of taxes paid that then get pumped into the economy in an almost circular fashion, allowing companies like Freedman Seating to obtain a more attractive financing package then they otherwise would traditionally.”
A firm relationship built on trust
The fact that Freedman and Banzuly were able to unlock this creative financing option is a testament to their extensive history, established over more than 15 years.
“We have an excellent partnership that encompasses all their business banking needs, from deposits to derivatives,” Banzuly explains. “Freeman is a company I’m proud to associate with. They are great employers—a bright spot in a challenging area of Chicago. I've always gravitated toward people who are stewards of their business and legacy and are dedicated to doing the right thing, which makes them an ideal fit with ONB’s business model.”
For his part, Freedman appreciates that Banzuly and his team have always treated them with respect and helped put together programs that met both parties’ needs, even during a pandemic-related downturn. “The bank stands behind us and helps coordinate the various resources we need at any given time. Good people are attracted to good companies, which is why ONB is so strong.”
Would you like to know more about how ONB can help fuel your business’ success? Find out more about its business banking products here.
