High-Tech Paratransit Company Purchases $3.8 Million East Bay Facility with an SBA 504 Loan
A-Para Transit Corporation Receives SBA Funds from TMC Financing
San Francisco, CA – TMC Financing, a leading Certified Development Company (CDC) providing Small Business Administration (SBA) 504 real estate financing in California and Nevada, announced that A-Para Transit Corporation has purchased a facility in San Leandro with an SBA 504 loan for $3,800,000. TMC Financing provided financing for forty percent of the total project cost. The additional funding was provided by Bank of America’s Pleasanton office and the buyer’s broker was from CB Richard Ellis.
TMC’s business development officer, Kurt Chambliss, facilitated the financing for the successful purchase of a 9,520 square foot building and a four-acre commercial lot to store A-Para Transit’s fleet of 110 vehicles. The new facility is located at 1420 Doolittle Drive in San Leandro, CA.
The SBA 504 loan program spurs small business growth by offering long-term, below-market, fixed rate financing for the acquisition, renovation or construction of commercial real estate.
“A key benefit to financing through the SBA is a smaller injection, as little as 10%, by the client than with conventional lending,” said Barbara Morrison, President and CEO of TMC Financing, “For A-Para Transit, additional working capital helps support the second generation owners’ technological implementation. At TMC, we love helping family businesses as they expand and innovate.”
A trio of siblings, Mandeep, Reena, and Sundeep Kumar, own and operate the family business founded by their father in 1979. A-Para Transit provides pre-scheduled transportation services to approximately 900 elderly or adult-handicapped people each day. The company’s specialized vehicles and medically trained drivers offer customers safe, comfortable, door-to-door service, 24-7.
The second generation owners have utilized available technology to equip the vans with geofiles and computerized maps that offer customers automatic vehicle location through GPS. A-Para Transit also participates in the East Bay Paratransit Consortium, a government sponsored program to assist people with disabilities to get from where they are to where they want to go in sedans or lift style vans.
“The SBA 504 loan from TMC Financing allowed us to leverage our company into an exciting new future,” said Sundeep Kumar, President of A-Para Transit, “We now have the resources to expand our business territories as well as room to grow in our new facility. TMC has been a great resource; they are in the business of financing real estate but feel more like advisors, assisting your company’s growth.”