SBA 504 loan helps two business owners purchase 175,000 sq.ft. warehouse
- Loan Purpose: Purchase of an industrial warehouse (real estate acquisition)
- Third Party Lender: Bank Five Nine
- Location: Montclair, CA
- Project Cost: $13,200,000
- Property: 175,000 square feet
- Jobs Created: 15 employees
At first glance, a crawfish distributor and a fencing company may not seem like your average “business partners”, but when a 175,000 square foot industrial warehouse went up for sale in Montclair, CA, the SBA 504 loan program offered both businesses the opportunity to work together and grow in ways they never imagined.
The crawfish distribution company receives shipments of crawfish from China and Egypt and keep them at their warehouses in Atlanta, New Jersey, Houston, and California, where they package and prepare for sale throughout the U.S.
The latter business is a supply and transport company for imported gardening supplies. With warehouses in Georgia and Tennessee, they work to sell their products for wholesale to industrial customers throughout the U.S.
These two immigrant-owned businesses worked in partnership with AmPac Business Capital and Bank Five Nine to secure a SBA 504 loan to help them purchase a facility they both could benefit from. However, this creative financing solution did not come without a few challenges, including
- Clearance of legal permanent resident status
- Recent merger/acquisition of another company
- Technical assistance support for professional financial statements
- Establishment and documentation of down payment resources
- Appraisal shortfall
As a result of the project, the owners were able to jointly move their
business operations into the warehouse and consolidate their west
coast operations, creating 15+ new jobs in the midst of a global
pandemic throughout the process. Today, the two businesses
continue to solidify and build their businesses within their community
and the broader United States.
Learn more about AmPac Business Capital’s SBA 504 Loan Program:
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