TMC Financing's SBA 504 Loan Program Helped Concord Florist Bloom
Oak Creek Florist was thriving and consistently growing - however constant lease renewals were hurting the business. This family-run florist didn't think they could afford to purchase a building - until they learned of TMC Financing and the SBA 504 Program. The program allowed them to purchase real estate with 90% financing and helped them realize their dreams.
OAKLAND. Calif., Oct. 26, 2021 /PRNewswire-PRWeb/ -- Business owner Sarah Chen is passionate about floral design – and Oak Creek Florist shows it. Ranked one of the top 100 florists in the nation, Oak Creek has been a part of the East Bay community for years. However, getting there was a challenge.
Despite the business' success and dedicated customers, there was always a lot of uncertainty around lease renewals. Renegotiating every two years with constant rent increases and the possibility of losing the space was taking its toll on Chen's plans to grow the business.
"We've always wanted to have our own property for stability, and so we don't have to move around," Chen explains. "Landlords don't look for long-term leases anymore – it's frustrating and a lot of work to move from one location to another."
Chen wanted more for her business and her customers. She needed funding to buy a permanent home for Oak Creek Florist. Despite Chen's incredibly well-run business and strong balance sheet, she wasn't sure if property ownership was within reach. The issue in the way was simple: the down payment.
"You have to have at least 30 percent down payment," she recounted. "That's very harmful to a family-owned small business, so that's why we never thought we could afford to buy property."
It took a while to start searching for a building – even once Chen was sure she wanted to buy. But the business was selling more flowers and welcoming more staff. Everyone stood to benefit if Chen was successful.
Thankfully, Chen heard about the SBA 504 Loan Program and its 10 percent down payment option. She got in touch with Wendy Guan from TMC Financing, and they put together a plan. Chen still thought the SBA 504 loan was too good to be true and was hesitant to tell anyone about her plans.
With the SBA 504 Program, business owners can buy commercial real estate and other fixed assets with below-market, long-term fixed interest rates. There are no balloon payments, and the loans are fully amortized over a 25-year period.
In addition to buying a commercial property, business owners can use proceeds to construct new or upgrade existing buildings, purchase equipment with at least a 10-year life expectancy, or convert facilities to use energy-efficient technology such as solar panels.
With help from TMC Financing, Chen was on the way to meet her goals.
"We were worried about how we were going to make a loan work," Chen said. "It was lovely to get connected with Wendy – she explained everything in detail. She was always patient and returned my calls promptly."
Leading a team of eight drivers and thirteen designers, Chen's days can be hectic. Guan was there throughout the process, which was just what Chen needed and made the true difference when balancing the demands of her schedule with the ongoing loan process.
Chen closed on the perfect location for Oak Creek Florist in Concord with 90 percent financing. She is the proud owner of 2820 Broadmoor Avenue and is thrilled with her below-market interest rate, fixed for 25 years.
"This year is really a dream come true," Chen says. "We have a lot more space and it's a lot safer for my employees. It's very exciting to come in and work at your own property. I feel so proud. Miracles happen."
About TMC Financing
TMC Financing is a non-profit 501(c)4 with a mission to promote economic development and job creation for small businesses in California, Nevada, and Arizona. Since its founding in 1981, TMC has secured more than $10 billion in SBA 504 commercial real estate financing for 6,000 small businesses. As a result of the financing, these small businesses have created over 60,000 jobs. Business owners in Arizona, California, or Nevada can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website at https://www.tmcfinancing.com/.
Media Contact
Lindsey Paley, TMC Financing, 4056555414, LINDSEY@TMCFINANCING.COM
SOURCE TMC Financing
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