SBA 504 Loan Seals the Deal for Dry Diggings Distillery Expansion

TMC Financing is pleased to announce the recent purchase of 4911 Windplay Drive in El Dorado Hills, CA, for $1,400,000. By utilizing the SBA 504 Program, Cris Steller, founder, and owner of Dry Diggings Distillery was able to purchase with 90 percent financing and obtained a below-market rate, fixed for 25 years.

Owner Cris Steller

Since its start in 2008, Dry Diggings has had high expectations and strong determination. Steller, along with his partners, Owen and Jamie Brooke, played a crucial role in getting the California distillery industry where it is today. Over the years, he worked tirelessly to fight for the industry and to pass legislation to allow tasting rooms, bottle sales, and more. The recent real estate purchase is another example of Steller’s strong business sense.

“When researching financing options to acquire our new building, a successful acquisition was my top priority. Today’s banks aren’t particularly eager to lend to distillery businesses, and I wasn’t confident that we could even get the deal done conventionally. I knew the SBA 504 Program was the route that would lead to success.”

Jim Azevedo of TMC Financing administered the SBA 504 loan that enabled the expansion of Dry Diggings Distillery.

“The SBA 504 Program was an ideal fit for Dry Diggings,” states Azevedo. “Cris understands the value in property ownership, and utilizing the 504 Program was the most advantageous way to complete the transaction.

“In addition to offering the best terms on the market, the SBA 504 Program also allows borrowers to purchase more space than what is immediately needed. Up to 49 percent of the unused space can be leased out to improve cash flow. Cris was able to take advantage of this and now has the space to expand when the time comes.”

The SBA 504 loan program helps businesses purchase owner-occupied facilities with long-term, below-market, fixed interest rates. Loans are fully amortized for 25 years. There is no balloon payment, and businesses can preserve their precious working capital with the 90 percent financing option.

Steller prepared to pay a larger down payment for the building purchase. However, with the 10 percent down payment of the 504 loan, Steller now has more cash in reserve for their next big project: the addition of a full-scale restaurant to the distillery.

“Utilizing the SBA 504 Program for this building acquisition put me back in the position of feeling comfortable. We’ve had a string of less-than-optimal landlords, which is why I’m not typically a renter. The space is ours, and no landlord can disrupt our business operations. We gained stability and the opportunity to be strategic with our growth. We can double our volume without having to move.”

Dry Diggings Distillery is family-owned and operated. Their distillery produces over twenty-five products for their brands, including Dry Diggings Distillery, Amador Distillery, and Engine 49. They create spirits from beginning to end by working with local farmers, vintners, and brewers, and their unique barrel aging process is how they produce some of the best craft spirits in the west.

TMC Financing’s SBA 504 Loan Program puts building ownership within reach for small business owners, and most businesses qualify. To find out more or get started with your own SBA 504 loan, contact one of TMC’s business development leaders in your area.