“This is our third location but our first purchase of commercial property and it has already helped us scale our business differently,” says Jenna Leurquin, founder and owner of Jenna Leurquin Patisserie. Here’s how she achieved property ownership with an Préstamo SBA 504 from TMC Financing for her much-loved bakery, which serves the Phoenix and Scottsdale, AZ, communities.
Returning to her roots
Jenna was raised in Belgium, where delicious baked goods are part of daily life. When she came to the U.S. on a full scholarship as part of the golf team at Boise State University in Idaho, she dreamt about them while earning degrees in international business and finance.
“I’ve always loved baking,” she explains, “and I missed the pastries from home. When I finished school, I thought that learning to bake professionally could be both fun and a great potential business in the future.”
Jenna completed the culinary and pastry program at Le Cordon Bleu in Paris, France. After consulting for Belgian and French restaurants and bakeries, she relocated to Scottsdale, AZ, in 2016 for an opportunity to run the pastry program at a private country club, with a goal of eventually opening her own bakery.
Success through baking
Jenna launched out of a commercial kitchen that she subrented, testing her pastries and breads at farmers’ markets before committing to her own bakery in Phoenix in March 2019; by that October, she opened a second location. Her bakery’s loyal following continued to grow, as did her talented and committed team, but when the pandemic hit, Jenna had to pare down operations and staff to stay afloat.
She spent the next several years rebuilding her team and strengthening operations and by 2024, she was ready for another location.
Great advice leads to TMC and the SBA 504 program
“We were outgrowing production space,” Jenna says, “and my accountant advised that if we were going to move, then this time around, we should own the building. That’s how I ended up researching financing options and getting in touch with TMC.” Recommendations for the Programa de préstamos SBA 504 and TMC Financing came through a bank and soon, Jenna was working with TMC SVP and Business Development Officer Chris Bane.
The SBA 504 loan program is an outstanding option for small business owners who want to purchase commercial property for their businesses, because it offers:
- A down payment of only 10% for most projects, which is significantly less than the 30-40% that’s required for conventional commercial mortgages. For a deal like Jenna’s, for example, which included the purchase of the property, renovations, and equipment, the down payment would be about $415,000, instead of $1.25-$1.7 million or more required for a conventional commercial mortgage.
- A fixed interest rate for the life of the loan, which can be from $50,000 to $5.5 million for the SBA 504 portion, with no maximum for the first mortgage. TMC has financed projects valued from $500,000 to $44 million.
- A 25-year term for most SBA 504 projects. This makes payments predictable and more affordable while stabilizing occupancy costs for decades.
In addition, ownership means that entrepreneurs build equity in a long-term capital asset for future financial security, while gaining tax advantages for the business today.
TMC’s experts make the loan process easier
Jenna says that this was the first time that she applied for financing for her bakery, so having an experienced team working on her behalf was essential.
“It was all new to me and the process was more involved than I’d anticipated,” she admits. “But Chris and the TMC team guided and supported me throughout. Chris explained what was needed and why, and I developed a better understanding of the loan process as I went through it. In the end, everything worked out great!”
Chris adds, “JL Patisserie is a terrific example of a growing business that’s ready to own its property, and working with Jenna was a pleasure. She strives for excellence in everything she does, including getting through the loan process, which takes time and focus. We do our best to make it easier and when clients are equally as committed, there’s a great outcome.”
Finding new opportunities to build profitability
Today, Jenna employs about 25-30 people, including bakers and front-of-house staff. And the new space also means new opportunities to strengthen JL Patisserie’s bottom line.
“At about 10,000 square feet, it’s nearly triple the size of the other locations. That means we can produce more baked goods while retaining the quality that we demand and our customers expect,” Jenna explains. “And I can buy ingredients and supplies by the pallet instead of by the crate, so I can negotiate better pricing and terms. That simply wasn’t possible before because we didn’t have the space for it.”
TMC Financing helps small business grow with the SBA 504 loan program
For other entrepreneurs, Jenna says, “Buying property is a big leap, so you need to be confident in your business and plans, but as long as you are, go for it,” Jenna says. “There are amazing resources out there, like TMC and the SBA 504 loan, that are here to help.”
If your business is located in TMC’s service area of California, Arizona, Nevada, Hawaii, and Oregon, Contáctenos to get started. If your business is located outside of our service area, try the SBA’s Lender Match tool to find a qualified certified development company (CDC) lending partner near you.