OAKLAND. California., October 26, 2021 / PRNewswire-PRWeb / – Business Owner Sarah chen is passionate about floral design – and Oak Creek Florist shows it. Ranked among the nation’s top 100 florists, Oak Creek has been a part of the East Bay community for years. However, getting there was a challenge.
Despite the company’s success and dedicated clients, there was still a lot of uncertainty around lease renewals. Renegotiating every two years with constant rent increases and the possibility of wasting space hampered Chen’s plans to expand the business.
âWe always wanted to have our own property for more stability, so we don’t have to move around,â Chen explains. âLandlords are no longer looking for long-term leases – it’s frustrating and a lot of work to get from place to place. “
Chen wanted more for his business and his customers. She needed financing to buy a permanent home for Oak Creek Florist. Despite the incredibly well-run business and Chen’s strong balance sheet, she wasn’t sure ownership was within reach. The problem was simple: the deposit.
âYou have to have at least 30 percent down payment,â she said. “It’s very damaging for a small family business, which is why we never thought we could afford to buy a property.”
It took a while to start looking for a building – even after Chen was sure she wanted to buy. But the company sold more flowers and took on more staff. Everyone would benefit if Chen was successful.
Fortunately, Chen heard about the SBA 504 loan program and its 10% down payment option. She contacted Wendy guan of TMC Financing, and they came up with a plan. Chen still thought the SBA 504 loan was too good to be true and was hesitant to tell anyone about his plans.
With the SBA 504 program, business owners can purchase commercial real estate and other fixed assets with long-term fixed interest rates below the market. There are no lump sum payments and the loans are fully amortized over 25 years.
In addition to purchasing commercial property, business owners can use the proceeds to construct new buildings or retrofit existing buildings, purchase equipment with a lifespan of at least 10 years, or convert facilities to use. energy efficient technologies such as solar panels.
With the help of TMC Funding, Chen was on the verge of achieving his goals.
âWe were worried about how we were going to operate a loan,â Chen said. “It was nice to be in touch with Wendy – she explained everything in great detail. She was always patient and returned my calls promptly.”
As the head of a team of eight drivers and thirteen designers, Chen’s days can be hectic. Guan was there throughout the process which was exactly what Chen needed and made a real difference in balancing the demands of his schedule with the ongoing loan process.
Chen closed on the perfect location for Oak Creek Florist in Concorde with 90 percent funding. She is the proud owner of 2820 Broadmoor Avenue and is delighted with its below market interest rate, set for 25 years.
âThis year is truly a dream come true,â Chen says. “We have a lot more space and it’s a lot safer for my employees. It’s very exciting to come and work on your own property. I feel so proud. Miracles happen.”
About TMC financing
TMC Financing is a 501 (c) 4 non-profit organization whose mission is to promote economic development and job creation for small businesses in California, Nevada and Arizona. Since its founding in 1981, TMC has secured over $ 10 billion in SBA 504 commercial real estate financing for 6,000 small businesses. Thanks to the funding, these small businesses have created more than 60,000 jobs. Business owners in Arizona, California, or Nevada can confirm that they qualify for an SBA 504 loan by visiting TMC’s financing website at https: //www.tmcfinancing .com /.
Lindsey Paley, Financement TMC, 4056555414, [email protected]
SOURCE TMC financing