Third-Generation Family-Owned Business Buys Its Building with Ease Thanks to SBA 504 Loan Program

In 1951, Brown Bolt & Nut was started by Emerson and Veronica Brown with a dream to sell the best products at the best prices in a fun, friendly environment. “Brownie” had a way with customers, and he knew how to put in a day’s hard work, too. His business journey started with a shared phone line and shelves at Henry’s Welding.

Over the years, Brown Bolt & Nut (BB&N) continued to build an outstanding reputation for quality fasteners, moving its headquarters to Paramount, CA in 1972. It has always been known as a family business, and it’s now in its third generation with Raymond Brown, Jr. working closely with dad Raymond, Sr.  Sisters, Katy, Erin, and Ronee also assist 1-2 days a week.

Customer service is the core of the BB&N experience. Ever since Emerson Brown moved to California from New York, the family has had a tradition of getting to know their customers. When they gained the opportunity to buy their building, doing so was a natural next step.

The question was: How?

Through Christina’s brother-in-law, a commercial real estate agent in Northern California, they heard about TMC Financing, a Certified Development Company that administers Small Business Administration (SBA) 504 commercial real estate loans with the most favorable terms.

Meeting with Jennifer Davis, TMC Financing's SBA 504 expert in Southern California, they knew they had found the right opportunity for them: A team that cared about their success and would make the whole process enjoyable, just like old Brownie.

The SBA 504 Loan Program Makes it Easier for Small Businesses to Buy Their Buildings

Raymond, Sr. always wanted to buy the space for Brown Bolt & Nut. But the right chance never came along, and the business actually had pretty low lease rates since they had occupied the property for so long. After connecting with TMC Financing and learning the terms of the SBA 504 Loan, Raymond, Jr. says “It was just a no-brainer after no-brainer … this is the right time.”

What changed? The SBA 504 Loan Program was a major factor.

SBA 504 loans are designed to help businesses, particularly small and mid-sized businesses, buy commercial real estate and other fixed assets. They offer below-market, long-term fixed interest rates, exactly what the Browns were looking for so they knew now was the time to act.

TMC Financing makes the SBA 504 loan process easy by guiding small business every step of the way. With down payments as low as 10%, below-market fixed interest rates fully amortized over 25 years, and no maximum to the total project cost, it is suitable for almost all for-profit businesses. No additional collateral is required, and closing costs can be also be financed.

“If the building would have changed hands, our rent would have doubled,” says Raymond, Jr.

With more than 10,000 square feet in their current space, Brown Bolt & Nut faced the big challenge of moving thousands of bolts, nuts, screws, and threaded rods if they had to relocate their business. When their building came up for purchase, they knew ownership would be best for their business and their peace of mind.

For 20 years, the possibility of the building passing to another owner had loomed large in their minds. Now, with the previous owner’s passing, the Browns turned to TMC Financing to understand their options. The SBA 504 loan was a natural fit, and TMC Financing made it easy to complete the process within the Browns’ urgent timeframe.

The Benefits of Owning Over Leasing Can Transform a Small Business

The Browns had always been happy in their space, but ownership has taken it to a new level.

“It’s a breath of fresh air,” says Raymond, Jr.. Over the last several months, they have seen turnover all over their street and throughout the industrial complex that BB&N calls home. Companies in a variety of industries have been forced to close their doors as a direct result of rising commercial rents.

That pressure is finally off the Browns’ shoulders – and they’re looking ahead to other benefits.

In the long run, owning the space has also opened up new avenues to save money on taxes and overhead. They are learning more and more every day about the ways they can leverage their property to increase the stability of their business. And they are happy to know that Emerson Brown’s legacy will continue in their neighborhood.

The Browns credit much of their success to the help they received from TMC Financing, especially Jennifer Davis. “Jennifer allowed me to be me,” as Raymond, Jr. tells it, and offered plenty of assistance. From the very start, asking questions was much easier than he thought it would be, creating a truly friendly atmosphere.

“We are constantly being reminded and reinforced of what a good decision it was to purchase our building,” Raymond, Jr. says with a smile. “It was exciting learning the process. A big part of that was knowing that we had people behind us that were looking out for us.”

About TMC Financing

TMC Financing is the no. 1 provider of SBA 504 commercial real estate loans in the Western Region of the U.S., helping small business expand throughout California, Nevada and Arizona.

Founded in 1981, TMC is the number one certified development company in the West and has funded projects worth more than $10 billion across California, Nevada and Arizona. About 6,000 businesses have benefited from this financing, resulting in the creation of an estimated 60,000 jobs.