Lease vs. Own Decision
Like many manufacturing companies, Dean Distributors leased their distribution facility. After leasing for over 50 years, owner Ralph Schulz decided it was time to stop paying rent to a landlord and put that money towards his own business.
In 2017, Schulz purchased a building in San Bernardino, California, with an adjustable rate SBA 7a loan. Unfortunately, the cost of the building improvements required to meet the standards of an FDA approved manufacturing facility far exceeded the original budget, as well as the maximum loan amount under the 7a loan program.
In this competitive California real-estate market, Schulz and his staff were in jeopardy of losing their building and absorbing a huge financial loss.
“We hired a mortgage broker to find a solution. She spoke with three different CDCs and was told by all three that this project was NOT SBA 504 eligible. When we met Jennifer Davis from TMC, she took the time to fully understand our situation and was the first to correctly structure an SBA 504 loan for us!” – Stacy Rusley, CFO, Dean Distributors.
SBA 504 Refinance with Expansion Program
Jennifer Davis explained that the SBA 504 Refinance with Expansion Program with could refinance their existing 7a loan with a long-term, below-market, fixed rate 504 loan, AND fund the improvements as well as the new equipment!
The SBA 504 Refinance with Expansion Program has allowed Owner, Ralph Schulz, to continue to reap the benefits of owning his facility while allowing Dean Distributor’s to stabilize its occupancy costs.
TMC Financing, the second largest 504 lender in California, is proud that we were able to find a solution for our client.
“Thank you, Jennifer, from the bottom of my heart! TMC’s hard work and dedication to our company is overwhelming to me! Thank you!” – Stacy Rusley, CFO, Dean Distributors, Inc.
Congratulations Dean Distributors!
How a SBA 504 Loan Can Help Your Business Refinance Commercial Mortgage Debt
Business owners can now access equity trapped in commercial real estate holdings by refinancing conventional real estate loans with TMC’s SBA 504 refinance loan.
Advantages of TMC’s SBA 504 Refinance Loan
- Financing up to 90% of the appraised property value
- Cash out for eligible business expenses up to 85% of the appraised property value (business expenses are limited to 20% of appraised value)
- Below-market long-term interests rate
- The ability to consolidate multiple loans
To learn more about the 504 loan contact TMC Financing’s 504 loan experts. TMC is an SBA Premier Certified Lender, and has funded projects worth more than $9 billion across California and Nevada, resulting in the creation of an estimated 60,000 jobs. With over 35 years of experience, TMC can help you find the financing that is best for you and guide you through the 504 loan process. Contact TMC Financing today.