(English) Roebbelen Contracting purchases company headquarters with SBA 504 loan
Low down payment allows business to save money by owning
Even for Roebbelen Contracting, Sacramento’s largest locally owned commercial construction company, the conventional down payment for commercial real estate seemed a little steep.
“What appealed most to us about SBA 504 financing was the 10 percent down payment,” Roebbelen COO Rob McLean explained. “If we had to come up with a down payment of 35-40 percent, it may not have made sense for the business.”
“The interest rate is so attractive that our mortgage payments are now less than our lease costs,” McLean said. “We were able to lower our operating costs and run more efficiently, which will allow us to execute more effectively, win more projects and hire more project teams.”
Roebbelen employs more than 275 people and provides General Contracting and Construction Management services in California, Nevada, Oregon and Washington. Around 80 percent of their projects are in Northern California, including correctional facilities, educational facilities, public utility projects, telecommunication and health care.
“TMC’s SBA 504 program was a good fit with our operating model,” McLean said. “We like to focus our resources on our business and didn’t want to tie money up more than an appropriate amount in the buildings. TMC did a great job of educating us on what to expect and guiding us through the process. It all went very smoothly and made for a great experience.”