Woman-Owned Construction Supply Firm Soars with SBA 504 Loan Program


Entrepreneur Karly Urata has a long history in the construction industry. For more than 20 years, she had the opportunity to learn from her father, the founder of a leading concrete subcontractor in Northern California.

It was time to strike out on her own with K&K Construction Supply. As a woman in a male-dominated industry, Urata knows what it’s like to triumph over adversity. When most of her industry contacts refused to buy from her, considering K&K a competitor due to her family background, she started from scratch. The business was soon supplying big construction projects like the Encore Hotel and the new Las Vegas City Center. Her brand was making a name for itself, and Urata had an all-new roster of contacts.

After the 2010 housing crash, K&K relocated their center of operation from Las Vegas to California.

“There wasn’t a single construction worker in town,” Urata recalls. Luckily, the business had recently opened a new California office. That soon became the center of operation for K&K Construction Supply.

Between 2010 and 2020, Urata and her team rebuilt K&K to new heights with a focus on West Coast construction contractors. In 2020, she realized the space she was renting no longer met her needs. It was to consider purchasing a building for her business.

The SBA 504 Loan Program from TMC Financing Helped K&K Accelerate its Growth

With just 4,000 square feet, Urata realized her leased space did not adequately showcase K & K’s construction inventory. The business rented a variety of warehouses and yards throughout the local area. Inventory was spread out and it was impossible to see all K&K had to offer in one space.

Urata decided it was time to take the next step towards a larger more conducive operating location, and for that, she took advantage of the affordable SBA 504 Loan Program.

Supervised by the Small Business Administration and issued by qualified financial institutions like TMC Financing, the SBA 504 loan program provides funds for businesses to purchase their owner-occupied commercial real estate at below-market fixed interest rates.

Most businesses can qualify, and many are eligible for a 10 percent down payment. Fully amortized over a period of 25 years and with no balloon payment, SBA 504 loans come with no hidden surprises. Therefore, business owners can forecast their finances and keep more of their money working for them.

Besides buying a commercial property, SBA 504 loan proceeds can also be used to:

  • Construct new or upgrade existing buildings
  • Purchase equipment with a life expectancy of ten years or more
  • Convert facilities to use energy-efficient technologies

There’s no maximum loan amount, no additional collateral required, and soft costs can be added to the SBA 504 loan package – including costs of closing on the commercial transaction. Many business owners find SBA 504 is the best loan option and is far preferable to a conventional commercial loan.

Urata was diligent about exploring her options. Through her bank and contacts in the industry, she heard about SBA 504 and TMC Financing. Soon, she connected with Jim Azevedo, a Senior Vice President of Business Development for TMC in the Greater Sacramento Area.

“Working with Jim was great,” Urata tells us. “The 10 percent down was very appealing.”

Jim Azevedo, Vice President, TMC Financing


With help from Jim and the rest of the TMC Financing team, the SBA 504 loan process was smooth sailing for K&K Construction Supply. Urata was optimistic about how owning the building could change her business, but she couldn’t have imagined the profound effect it would have.

“I was glad I could help Karly secure the property she needed to really showcase her industry experience,” says Jim Azevedo.   Helping small business owners gain access to affordable real estate financing to amplify their business growth, is exactly what the 504 program is designed to do.”

K&K Construction Supply Is Now Seen as a Major Industry Player

Moving from her original rented space of just 2,000 square feet, Urata reorganized her business in a new 15,840-square foot industrial warehouse in Rancho Cordova, CA. Although zoned and priced as an industrial facility, its retail-like appearance has helped increase business.

Prior to purchasing the building, there was virtually no drive-by business. Now, drive-by customers stop at K&K Construction on an almost daily basis. The interior makes a strong impression on newcomers, too, states Urata.

“We’re able to have stronger relationships with our vendors and can actually advertise with their products now.”

All in all, the SBA 504 loan program has transformed K&K for the better.

“This program was amazing for us,” Urata says. “Buying a building and not paying rent to a landlord is so rewarding. We’re investing in the property, not just paying someone else’s mortgage.”

TMC Financing is a non-profit certified development company (CDC) with a mission to promote economic development and job creation for small businesses in California, Nevada, and Arizona. Since 1981, TMC has secured more than $10 billion in SBA 504 commercial real estate financing for thousands of small businesses. Our team is excited to show you the ways that an SBA 504 loan can help you, too.