“Even though we comparison shop for loans, we’ve come back to TMC Financing and our partnering bank, Alliance Bank, because they offer the best terms and overall loan experience for ground-up projects,” says Mary Perez, who currently owns six Wendy’s franchises with her husband, Roberto, with a seventh in the works.
Here’s how TMC and Alliance Bank helped the Perezes secure financing with an SBA 504 loan for their newest development project – the second time that they turned to this team for their SBA 504 financing needs.
Bringing more than 25 years of experience to the project
When Mary and Roberto decided to purchase their most recent Wendy’s franchise property in San Tan Valley, AZ, they did so with decades of experience and success behind them.
“Roberto’s background is as an aerospace engineer and I worked in advertising,” Mary explains, “and we realized a long time ago that our financial and professional futures could always be in other people’s hands. We were brainstorming options to create a more secure future for our family and we both love Wendy’s, so it seemed like a good potential fit.”
Wendy’s was just beginning to open opportunities in the Phoenix area when the Perezes contacted the company’s franchising operation and secured their first restaurant.
“We sold our house and put everything we had into our first location, which we opened in 1998,” Mary says. Together, Roberto and Mary managed the restaurant and worked on the day-to-day operations, getting to know everything about running their new enterprise. After they secured their second franchise, they pivoted to growth mode. Today, they have about 160 employees and management and operational teams in place.
Returning to TMC and Alliance Bank for SBA 504 loans
Mary says that they first learned about TMC Financing through representatives at Alliance Bank, who introduced the Perezes to the SBA 504 loan program and recommended TMC as the loan partner. SBA 504 loans are the most popular SBA offering for businesses seeking to purchase owner-occupied commercial real estate because of the tremendous benefits for borrowers. With the SBA 504 program, small business owners can:
- Purchase property with only 10-15% down, instead of the 30-40% down payment that’s required for conventional commercial mortgages
- Benefit from a fixed, below-market interest rate over the life of the loan and from a longer repayment term, which makes it easier to budget and manage occupancy costs
- Gain potential tax benefits while building equity for long-term security
Mary explains that more than a decade ago, she and Roberto were the first franchisees to propose to the Wendy’s corporate team that they allow use of the SBA 504 loan program for franchise acquisition and development. Since then, the SBA 504 program has become a financing option for other Wendy’s franchisees.
“We were still in the Great Recession and Wendy’s wanted to increase franchise-ownership opportunities for minority owners, so they were receptive to financing options that made ownership viable,” Mary says.
TMC brings experience and support
Their most recent deal was also the second time that the Perezes worked with TMC Business Development Officer Geoff McGivern for their deal. The project was a ground-up development that included the purchase of the land as well as construction of the restaurant.
“Geoff and the entire TMC team are supportive, communicative, and knowledgeable about the loan process, which is critical,” Mary says. “Roberto and I had experience with SBA 504 loans before this project, but with complex real estate deals, you’re going to hit some hurdles. Geoff and our Alliance Bank team kept things moving forward.”
Geoff says, “When it comes to ground-up projects like this or any other commercial real estate deal for small businesses, the entire process is a team effort. Great clients make it even more exciting and energizing and it’s been a pleasure to help the Perezes achieve their goals.”
For other entrepreneurs who are considering commercial real estate for their businesses, Mary offers this insight. “It’s hard to beat the SBA 504 program. The low down payment makes it easier early on and the blended interest rates between the bank portion and the SBA 504 make the rate lower for the life of the loan. It’s the way to go.”
Ready to grow again with TMC and the SBA 504
“We like to put our locations near where we live,” Mary says, “because we’re in them all the time and everyone knows us.” That includes the property for their seventh location. They’re ready to come back to TMC for another SBA 504 loan, too.
“When you have an experienced SBA partner, like TMC, that’s key. Good partners make the process seamless,” Mary says.
If you’d like to learn more about how we can help you, contact TMC Financing today.