SBA 504 Loan Program Brings Sweet Success to Car Wash + Ice Cream Shop Owner


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Sometimes becoming a successful car wash owner starts with something as simple as washing your car — and adding in a sweet idea like ice cream.

For Miguel Miranda, his future car wash ownership started in September of 2000 when he stopped by Speedway Car Wash in Yuma, Arizona, to wash his vehicle. While there, the owner of the car wash told Miguel he was looking for help managing the business, and he quickly committed.

Miguel began managing two Speedway Car Wash properties in the area, and over the years his relationship with the owner grew so strong that he began leasing the car wash properties to Miguel. Over time, Miguel had the idea to open an ice cream shop in one of the locations, which became such a surprise success that it was bought from Miguel and opened its own location down the street.

When the car wash owner asked Miguel to re-open a new ice cream shop on the properties, Miguel said he would on one condition: if he could buy the properties and run them as his own business.

The SBA 504 loan program made ownership possible

Miguel’s dream of small business ownership was made possible by the SBA 504 loan program which allows business owners to buy commercial real estate with below-market fixed rate financing.

That’s when Miguel connected with TMC Financing. Geoff McGivern, who spearhead’s TMC Financing’s 504 lending in Arizona, helped facilitate the loan he needed for both Speedway Car Wash properties and all the necessary equipment. It’s the ideal financing solution for small business owners like Miguel who want to switch from leasing property for their business to owning it outright. Benefits of the SBA 504 program include:

  • Up to 90 percent financing (85 percent for car wash businesses), which allows business owners to preserve capital for day-to-day operations
  • Fixed, below-market interest rates so that payments stay low over the course of the loan and won’t balloon over time
  • Longer terms, including the choice of 10, 20 or 25 years
  • No additional collateral is required, beyond the subject property
  • Versatility of funds and no limit to project costs: this means all needs can be rolled into one loan and the financed amount can go toward the purchasing of land, buildings, equipment or improvements
  • Ongoing support from a certified development company (CDC) who will help with paperwork, process and other issues throughout the lifetime of the loan

    Geoff McGivern, SVP business development

“Geoff was very positive and supportive through the whole process,” Miguel says of his experience obtaining the SBA 504 financing. “He helped overcome every obstacle and I was able to purchase new equipment in addition to the land. Anyone who owns a business should absolutely investigate the SBA 504 loan option to purchase property.”

In Miguel’s case, the SBA 504 loan enabled him to purchase two parcels of land and over $45,000 in equipment upgrades. Miguel received about 80 percent financing to cover the $735,000 total project cost. His occupancy costs are now stable and fixed for the next twenty years.

“A low down payment was essential for Miguel to purchase the property. The SBA 504 loan provided just what he needed,” Geoff says. “The loan will provide Miguel and his family the stability to operate both Speedway car wash locations at a fixed cost for decades.”

“Even better,” Geoff adds, “Small business owners who take advantage of the SBA 504 program know that they also benefit from ongoing support from a certified development company (CDC) who will walk beside them throughout the life of the loan. So there is always support if needed.”

The benefits of small business ownership

Today Miguel is proud to be the full owner of both Speedway Car Wash locations (ice cream shop included.) “I always had a passion for the business in hopes of one day owning it,” Miguel says. “With complete ownership of the business and the property, it feels different now. Now it’s personal and an investment for my family.”

For Miguel, ownership is also a way to give back to the community. “I feel like I have more ways of helping now, whether it’s giving advice to other business owners, donating to a non-profit or providing more jobs for people here in Yuma.”

The 504 loan program can make a difference for business owners and communities

An SBA 504 loan is more obtainable than many people think. Many business owners who want to switch from leasing a property to full ownership will qualify for the program by just meeting minimal requirements and proving that they are an operating for-profit business.

TMC Financing is a leader in SBA 504 financing, with nearly 40 years of experience, TMC can help any business owner find the financing option that is ideally suited to them and help guide them through the 504 loan process from start to finish.