In the cosmetics industry, a new trend has recently gained traction: eyelash extensions—an efficient, time-saving method to achieve flawless, long, yet perfectly curled eyelashes. After experiencing eyelash extensions for the first time, entrepreneur Maria Powell was so impressed with her cosmetic transformation that she founded her own eyelash extension salon, Happy Lashes, in San Francisco, CA.
Already a trained nurse, Maria utilized her passion for people as well as her skilled attention to detail to help Happy Lashes excel. Knowing how delicate the eyelash application process can be, Maria wanted to make sure that Happy Lashes offered clients continual comfort and security.
Maria realized that the optimal way to create a foundation of stability and trust for her patrons was to become a property owner through the Small Business Administration’s (SBA) 504 Loan Program.
Utilizing the SBA 504 Program to Purchase a Building
After leasing salon space for many years, Maria decided it was time to stop making lease payments and buy her own building. Property ownership would allow Maria to take full control of her business’s occupancy costs and design her salon as she saw fit.
“I needed the flexibility to design and furnish my salon the way I envisioned,” Maria expressed. “I wanted to furnish my business, so that all my clients could feel relaxed and comfortable, and I wanted to do so without having to get landlord approval.”
Anna O’Brien, Senior Vice President of Business Development at TMC Financing, worked with Maria and explained that SBA 504 Program is specifically designed to help small business owners finance the purchase of commercial real estate at a below market, fixed interest rate.
As result, TMC Financing helped Maria secure $1.2MM in SBA 504 financing to purchase her 2,125 square–foot building in downtown San Francisco. Maria was thrilled with how seamless the 504 loan process was and extremely thankful that such a low down payment was required.
“The SBA 504 loan is one of the most secure and efficient financing options available for strategic small business growth, which is why it was an excellent option for Maria and her business in their current stage of expansion,” explained Anna O’Brien.
“Many business owners assume that their businesses either do not qualify for the SBA 504 Loan or that the loan process is too complex,” O’Brien continued, “which discourages them from pursuing the loan any further. However, with the right financing partner, the SBA 504 Loan is simple and straight forward.”
This acquisition not only gave Happy Lashes the long-term stability that the business required in order to expand, but it also allowed Maria to dive deeper into the cosmetic industry. By substituting her rental payment subject to continual increases, with stabilized mortgage payments; Maria was provided peace of mind.
Ultimately, Maria reaped the benefits of property ownership and not her landlord.
More About the SBA 504 Loan
The SBA 504 Loan Program provides small and medium sized businesses with long-term, fixed-rate financing that can be used to finance commercial real estate purchases, construction/renovations, equipment, soft costs and closing costs. By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides businesses and communities long-term stability. The 504 Loan is administered by a Certified Development Company, such as TMC Financing, and individual loans are granted in conjunction with a conventional lender.
About TMC Financing
TMC Financing is a high-volume, Premier Lender with the SBA, and one of the country’s top 504 lenders. During the past 35 years, TMC has provided over $9 billion in financing for more than 5,000 businesses throughout California and Nevada. Our experts will be happy to answer your questions about the 504 loan and to guide you through the loan process. Contact TMC today to get started.