Alfredo Gonzales, owner of Arch Plumbing, utilized the SBA 504 Program to purchase a 3,629 square foot building located at 3450 3rd Street in the heart of industrial San Francisco for $1.425M. Buying his building through the SBA 504 loan program has played a huge part in the success of Alfredo’s business. He was able to replace his increasingly expensive leased space with stable monthly payments on a property that he owns.
Arch Plumbing is a family-owned, full-service plumbing contractor that has provided residential and commercial services to the Bay Area since 2012. When the San Francisco real estate market became shockingly competitive and business owners were met with volatile lease rates in 2018, Alfredo knew he needed to secure a permanent location to protect his business. Alfredo decided that it was time to stop leasing and buy his building. This transition would ensure long-term stability and fixed monthly occupancy costs. It would also give him the opportunity to add additional office space and increase his cash flow.
The Small Business Administration’s (SBA) 504 loan was the perfect financing option for Arch Plumbing. It is specifically designed to help small business owners purchase commercial real estate at a below market, fixed rate. In addition, with only a 10 percent down payment, it opens the doors to building ownership to business owners that otherwise couldn’t afford it.
“What I appreciated the most about the program was the accessibility and support I received,” explains Alfredo. “The continuous support from the TMC Team gave me the confidence and courage to become a property owner.
“The overall process of applying for the loan was easy. I had great help from my banker, my broker, and the TMC team that guided me through the process. It was a very smooth process from start to end – I would definitely recommend the 504 loan to other like-minded business owners.”
More About SBA 504 Real Estate Financing
The Small Business Administration 504 Loan Program allows small-business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the total project cost, which can include the purchase price, 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. Business owners can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website.
Contact TMC Financing
TMC Financing is one of the nation’s top-ranking CDCs and a Premier Certified Lender with the SBA. If you are thinking about buying your own commercial property in California or Nevada, talk to one of our local 504 loan experts. Regardless of where you are in the process—TMC Financing can help guide you through the next steps and help you with the pre-qualification process.