“We had wanted to buy the property for Tin Roof Bistro for years,” says Mike Simms, CEO and co-founder of the restaurant that he owns along with his father, Tom, and his brother, Chris. They’ve operated in the space since 2009 and when the opportunity to purchase it finally arose in 2023, the decision to use the SBA 504 loan program, in partnership with TMC Financing and their commercial bank, CalPrivate, was an easy one.
Here’s why Mike and his team chose the SBA 504 loan and how TMC helped bring their goal of property ownership to fruition.
The SBA 504 secures a family and community legacy
Mike is a third-generation restaurateur in Southern California – his grandfather, Arthur, started with coffee shops and over many years and subsequent generations, Simms Restaurants has grown into a diversified hospitality group. Tin Roof Bistro brings the atmosphere and offerings of Northern California’s wine country to their popular Manhattan Beach area.
“We have a great location for Tin Roof Bistro and the previous owner knew that we’d want to purchase it, so when we were approached with the opportunity, we jumped at the chance,” Mike explains. He says that their bank recommended both the SBA 504 program and TMC as the financing partner.
The SBA 504 is an outstanding loan option for the purchase of owner-occupied commercial real estate. In the case of Tin Roof Bistro, going with this program meant a 10% down payment on the $16.2 million deal (compared to 30-40% required for conventional commercial loans), with a repayment term of 25 years and a fixed interest rate. Together, these benefits make it easier to budget for monthly payments while securing the property for the business.
“You just can’t beat the down-payment requirement and terms, which makes a purchase like ours viable,” Mike says.
Working with an experienced SBA 504 financing team makes a difference
“Our TMC team, led by Dean Aloe, was great to work with,” Mike says about their experience. “You expect some challenges with a large purchase like this, but TMC and our bank ensured that the whole process was remarkably smooth. The communications were excellent and our financing team drove the process and came together to move it forward.”
Mike also appreciates the financial and other benefits of property ownership.
“There are so many advantages to owning our property,” Mike says, “including tax benefits, building equity, and having predictable monthly payments. But for us, perhaps the most important advantage is that it really secures our business. We’ve had restaurants in Southern California for over 50 years, and now, we don’t have to worry about the Bistro’s future. We won’t have to move and our costs won’t skyrocket, which can happen in high-demand areas like ours. It provides a lot of peace of mind for us, our families, our staff, and our community.”
TMC can help you secure your business’s future, too
Through his experience, Mike has gained some great insight that he offers for other entrepreneurs.
“We’re in a location in which property costs are high to begin with and when you factor in higher interest rates for mortgages, business owners may hold off on moving forward with property purchases,” Mike says. “If you can, though, take a look at the SBA 504 loan, because you may be surprised by how viable and affordable property ownership can be with it. And, if interest rates go down in the future, you can refinance. So, if your business and your deal fit the SBA 504 requirements, jump on it!”
If your business is located in TMC Financing’s service area of California, Arizona, Nevada, Hawaii, and Oregon, contact us to find out more and to get started with the SBA 504 loan program. And if your business is located outside of our service area, try the SBA’s Lender Match tool to find a qualified certified development company (CDC) lending partner near you.
About TMC Financing
Founded in 1981, TMC Financing is the leading provider of SBA 504 commercial real estate loans in the nation, funding projects worth over $14 billion across Arizona, California, Nevada, Hawaii, and Oregon. Over 7,000 businesses have benefited from this financing, resulting in the creation of an estimated 60,000 jobs.