An SBA 504 Loan Secures Property and More for Groceries 4 Less

For Bryan Solus, the owner of Groceries 4 Less! – a popular Modesto, CA-based discount grocery store – the opportunity to buy his store’s commercial property came years after he bought the business. “I knew that buying the property would help me manage my store’s long-term occupancy costs and, as the years went on, it also became important for my own financial foundation,” Bryan says.

Here’s how Financiamiento TMC helped Bryan purchase the property and achieve both financial goals – gaining control over business expenses while investing in his long-term financial well-being – with an SBA 504 loan.

Leveraging a real estate opportunity

Bryan has been a part of the Groceries 4 Less! family for 16 years, starting as its operations manager when he was eighteen years old. When his friend, who was also the store’s previous owner, offered to sell it to him in 2014, Bryan jumped at the opportunity.

“I always enjoyed the grocery business and this community, so it was an easy decision,” Bryan says. Around late 2022, Bryan had another great opportunity – to purchase the 17,000-square-foot grocery-store property. For him, this decision was easy, too.

“I knew that owning the building and having a predictable monthly payment was better than paying rent.” he says. “And I also knew it was time to start thinking about my own long-term financial security. Owning this property is a huge step in building a more secure retirement. "

The SBA 504 loan program makes it possible

Bryan’s friend – the store’s previous owner – told Bryan about TMC and the SBA 504 loan program. When Bryan heard about the program’s low down-payment requirement – just 10% of the project total, instead of 30-40% that conventional commercial loans require – he was sold. In addition, the SBA 504 loan includes a fixed interest rate, a 25-year amortization, and the option to refinance with another SBA 504 loan if/when interest rates decline.

Bryan connected with TMC Senior Vice President and Business Development Officer Jim Azevedo, who was excited to help make Bryan’s vision of owning the property a reality.

SBA 504 deals include SBA-guaranteed financing up to $5 million, with no predetermined limit on the overall project cost. The loan structure includes:

  • The owner’s down payment (usually 10% of the total)
  • SBA financing up to 40%
  • The balance through a commercial-banking partner

“It was a pleasure to leverage TMC’s relationships and experience to facilitate the Groceries 4 Less! deal, including identifying commercial-bank partners for the SBA 504 program,” says Jim Azevedo. “Ultimately, Bryan received several offers and chose the best terms for his deal which, in this case, meant partnering with Bank of America.”

An experienced financing team results in a low-stress experience

Bryan says the experience that Jim and the TMC team offer makes a huge difference.

“With any large real estate deal, there are going to be a few bumps,” Bryan explains, “but Jim and TMC were great. They were easy to reach and responsive and kept the purchase moving forward, and the entire process took about 4-5 months. As long as you have the paperwork ready, like your financial projections and tax returns, then it’s a straightforward process.”

Today, Bryan has the satisfaction of knowing that his business is more secure for his 13 employees and his Modesto community and that, as the owner of valuable commercial real estate, his own financial future is much brighter, too.

TMC Financing helps entrepreneurs gain financial stability and strength

“If you own your business but don’t own your commercial property, get your paperwork together and apply with TMC,” Bryan says. “Owning your property is more attainable than you may realize because of the SBA 504 loan and its low down-payment. For me, that made all the difference.”

Founded in 1981, TMC Financing is the leading provider of SBA 504 commercial real estate loans in the nation, funding projects worth over $14 billion across Arizona, California, Nevada, and Oregon. Over 7,000 businesses have benefited from this financing, resulting in the creation of an estimated 60,000 jobs. Contact us today to learn more.