SBA 504 loan program brings sweet success to car wash


Sometimes becoming a good car wash owner starts with something as simple as washing vehicles – and adding a sweet idea like ice cream.

Click here to read more

For Miguel Miranda, his journey to car wash ownership began in September 2000 when he stopped at Speedway Car Wash in Yuma, Arizona to wash his vehicle. While there, the car wash owner told Miranda he was looking for help running the business, and he quickly signed on.

Miranda 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 renting out the car wash properties in Miranda. Over time, Miranda came up with the idea of ​​opening an ice cream shop in one of the locations, which became such a surprising success that it was bought from Miranda who opened his own store down the street. .

When the car wash owner asked Miranda to reopen a new ice cream shop on the properties, Miranda said he would do so on one condition: he wanted to buy the properties and run them as his own business.

SBA 504 Loan Program

Miranda’s dream of owning a small business was made possible through the SBA 504 loan program that allows business owners to purchase commercial real estate with below-market fixed rate financing.

It was then that Miranda got in touch with a certified development company (CDC) in the region. Geoff McGivern, Vice President of Business Development for TMC Financing, helped secure the loan he needed for the Speedway Car Wash properties and all the necessary equipment. This loan program is the perfect financing solution for small business owners like Miranda who want to transition from renting a property for their business to owning outright.

Benefits of the SBA 504 program include:

  • Up to 90% financing (85% for car wash businesses), allowing business owners to preserve capital for day-to-day operations
  • Fixed, below-market interest rates so payments stay low over the life of the loan and don’t swell over time
  • Longer terms including choice of 10, 20 or 25 years
  • No additional collateral is required, beyond the property in question
  • Versatility of funds and no limit to project costs – this means that all needs can be consolidated into one loan and the amount financed can be allocated to the purchase of land, buildings, equipment or improvements
  • Ongoing support from a CDC that will help you with paperwork, processes, and other issues throughout the life of the loan.

“Geoff was very positive and supportive throughout the process,” Miranda says of his experience securing SBA 504 financing. new equipment in addition to the land. Anyone who owns a business should definitely investigate the SBA 504 loan option to purchase property.

In Miranda’s case, the SBA 504 loan allowed her to purchase two plots of land and more than $45,000 in equipment upgrades. Miranda received approximately 80% financing to cover the total project cost of $735,000. Its occupancy costs are now stable and fixed for the next 20 years.

“A low down payment was essential for Miguel to purchase the property. The SBA 504 loan provided him with exactly what he needed,” McGivern says. “The loan will provide Miguel and his family with the stability to operate the two Speedway Car Wash locations at a fixed cost for decades.”

“Even better,” adds McGivern, “Small business owners who take advantage of the SBA 504 program know they also have the ongoing support of a Certified Development Company (CDC) who will be with them throughout the life of the loan. So there is always support if needed.

The Benefits of Small Business Ownership

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

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

Make the difference

An SBA 504 loan is more accessible than many people realize. Many business owners who want to transition from renting a property to full ownership will qualify for the program by simply meeting the minimum requirements and proving they are a 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’s right for them and guide them through the process. 504 loan from start to finish.

Source link

Comments are closed.