BREAKING NEWS: 25-year SBA 504 loan is now available

  • This is a new product in addition to the existing 20-year and 10-year SBA 504 loan products
  • 25-year term, fully amortized
  • Below-market fixed rate
  • Available for all projects approved on or after April 2, 2018
What this means for small business owners:
– Lower monthly payments
– Increased cash flow
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NPI Solutions, Inc. secures $7.3 million in financing to purchase a 52,000 sq. ft. industrial office lab space in San Jose, CA

Capital Access was thrilled to help Kevin Andersen, CEO of NPI Solutions, Inc., secure $7.3 million in financing to purchase a 52,000 sq. ft. industrial office lab space on a 3.8 acre parcel in San Jose, CA. NPI contracts with industrial, technology, medical, and science businesses to design their next-generation products from concept, to prototype, to final assembly and test, to life-end support.

Founded in 2000, NPI has experienced exponential growth, with operations in California, China, and Singapore. After 16 years of leasing and subleasing space in Silicon Valley, however, Kevin and his son Keith, who serves as the Director of Design Engineering for NPI, decided it was time to buy a building of their own.

The Andersens were attracted to the 504 loan’s low, 10 percent down payment, so they could “keep a sufficient amount of money within the company for operations,” according to Keith. The 504 loan also allows the company to lock in costs and make it possible to manage the maintenance of the building.

“We know where we stand now,” said Keith. “We can model what the business looks like in five years, ten years, and twenty years, because we are able to fix the costs and understand them more specifically. We can also manage the maintenance of the building without landlord controls.”

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AHK Electronic Sheet Metal purchases 58,500 sq. ft. manufacturing facility in San Jose with $9.3M in SBA 504 funds

Capital Access Group was pleased to help Elie Antoun, owner of AHK Electronic Sheet Metal, Inc., access $9.3M in SBA 504 funds to purchase a 58,510 sq. ft. manufacturing facility in San Jose. AHK’s expansion takes place in the already booming Silicon Valley, known more for the tech corporations that contribute to the area’s economic growth.

Antoun also owns Etched Media Corporation and recently purchased Tobar Industries to increase AHK’s manufacturing capacity. Co-locating AHK, Tobar Industries, and Etched Media in the new facility allows Antoun to move at a faster pace and run his businesses more efficiently.

“The loan gives us certainty. We know how much rent we’re going to pay, we know how much it’s going to cost us from that perspective,” said Antoun. “The SBA 504 loan provided the security that allowed me to be bold.”

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Capital Access Group Board of Directors approves grant to small businesses affected by the North Bay fires

Capital Access Group’s Board of Directors approved a grant to assist in fire recovery for small businesses in the affected North Bay counties. Rotary District 5130 will manage and distribute funds through their Business Grant Recovery Program.

Capital Access Group’s grant will aid small businesses in re-establishing their operations and preventing them from closure due to losses suffered from the fires.

“The North Bay fires devastated many small businesses, affecting the business owners, their families, and the surrounding community,” said Jacklyn Jordan, President and CEO, Capital Access Group. “We are proud to partner with Rotary District 5130 to help rebuild the community and to give small business owners in the area the support they need to get back to business.”

The Rotary District 5130’s Business Grant Recovery Program provides grants of up to $5,000 based upon demonstrated need. The grants may be approved to replace inventory, equipment, tools, repairs, and anything else necessary to re-establish the business. Approved grants do not need to be repaid.

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Treehut plants seeds for design and manufacturing expansion in San Francisco’s SOMA district with $4.43M in SBA 504 financing

Meet two of Capital Access Group’s latest borrowers, Julia and Johannon Olson, co-owners of Treehut, a design and manufacturing company that handcrafts watches and eyeglasses made of real wood. Capital Access recently helped the husband-and-wife team secure financing to purchase a 7,333-sq. ft. industrial-warehouse building in the center of the city’s thriving South of Market neighborhood.

Over the past four years, Treehut experienced exponential growth. Julia and Joh started operating Treehut out of their basement, and then moved the business twice to accommodate its growth, but leasing space was never a long-term solution.

“We are a manufacturing business, which requires us to customize the space to fit our needs,” said Julia. “Not a lot of landlords are fans of renting space to us for that reason, so we decided it was time to purchase property. Now we have the flexibility to make the space the best use for our manufacturing facility.”

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Longview Stables wrangles 15 acres for an equestrian facility

Capital Access Group provided $2,650,000 in total project financing to Lisa Durbrow and Cydney Shald, co-owners of Longview Stables, to purchase an equestrian facility located at 3777 Vineyard Road, Novato, CA. The property includes 15.1 acres of land, a residential building, and multiple horse stables and riding arenas.

Lisa and Cyd, a mother-and-daughter team, have been in business together since 2010. They currently lease space in Nicasio Valley, CA, and will move the business to the new property later this year. They couldn’t have done it without support from Capital Access and the SBA 504 program.

According to Lisa, “The only way that we were going to be able to secure this purchase was with the SBA 504 loan. Our banker told us about the program, and Capital Access Group took a leap of faith in us and our business. They had faith that in what we could do.”

“Working with Capital Access Group was super-easy and seamless,” she said.

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Redwood Montessori School purchases property to make the business their own

Capital Access helped another North Bay business, Redwood Montessori School, to access $320,000 in total project financing to purchase a 1,215-square-foot building at 11201 Main Street, Penngrove, CA. Now the business owners, Aishwarya Kancharla and Daniel Turner, have a monthly mortgage payment that is lower than their rent!

The Redwood Montessori School’s physical environment plays a central role in the overall curriculum, so it was in important development for the business owners to purchase the building. From the developmentally-appropriate classroom layout to creating an outdoor area that enriches children’s interaction with the equipment, the natural environment, their teachers, and peers.

“It feels amazing to own the property,” said Aishwarya. “The low down payment made it possible to buy the property, but beyond that, our monthly mortgage payment is lower than our rent! Now, we can do what we want, what we feel is appropriate for the success of the academic program and our students.”

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Capital Access Group recognized as one of the largest SBA lenders by both the San Francisco Business Times & Silicon Valley Business Journal

The San Francisco Business Times released its annual list of the largest SBA lenders. Capital Access Group finished the year as the 4th largest lender in the region, with 30 loans for a total of $34.77 million in SBA funds. The Silicon Valley Business Journal also released its annual list of the largest SBA lenders, and Capital Access Group was ranked the 4th largest lender in that region as well, with 19 loans for a total of $26.14 million in SBA funds. We are pleased to provide support to businesses in the San Francisco and Silicon Valley areas and throughout the State, to allow them to secure financing to own their own real estate, which creates jobs and strengthens the community.

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Capital Access Group helps business owner take full ownership of Five Points Tire Imports in Redwood City

Victor Khedr, Owner of Five Points Tire Imports, recently secured $2.5 million to purchase two buildings at 2103 El Camino Real and 10 Manzanita Street, Redwood City, CA.

According to Khedr, “Owning property is the way to go because it’s something that will appreciate in value. I’m not throwing money away on rent anymore. This building is my retirement.”

Previously, Khedr was the owner of Ben’s Auto Tech, but when he began having difficulty with his landlord, he decided to explore opportunities to relocate or buy a new business. In 2016, he discovered that Five Points was for sale. He purchased the business, and merged it with Ben’s Auto Tech. After a successful first year, Khedr decided to exercise his option to purchase the buildings and take full ownership of Five Points. He approached his tax consultant, who told him about the SBA 504 program, and Khedr was introduced to CapitalAccess Group.

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Senior Executive Leaves Corporate World to Purchase Building Supply Center Hardware Store and 10,700 Sq. Ft. Building in Pt. Reyes

Capital Access Group helped another small business owner buy a building in beautiful Point Reyes, CA.

Ken Dunaj spent ten years working as the Chief Operating Officer at Restoration Hardware before deciding to leave the corporate world. Ken and his wife, Kelli, dreamt of owning Building Supply Center, located at 11280 State Route 1, Point Reyes Station, CA. The store has been a pillar of the community for over 51 years.

The Dunajs purchased the existing Ace Hardware business from the previous owners in 2015. Capital Access Group helped Ken and Kelli to secure $2 million in total project financing to take full ownership of Building Supply Center by purchasing the 10,700 sq. ft. building.

Ken appreciated the “calm and comfortable” financing experience he had with Capital Access Group. “With traditional financing, you almost feel like you’re being judged,” said Dunaj. “The experience with Capital Access was completely different. They want you to get the financing. Claudia (Cohen) and the team helped bring our vision to life.”

“Capital Access Group helped make my family’s dream a reality,” said Dunaj.

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Executive Search Firm, Groupe InSearch, Purchases Commercial Space in San Francisco’s SOMA Neighborhood for $4M with Financing from Capital Access Group

Capital Access Group recently helped Angelica Rains to secure $4 million in total project financing to purchase a commercial space in one of San Francisco’s most desirable locations. Rains, President and CEO of Groupe InSearch, a specialty executive search firm, never thought she would own her own commercial space, but after 18 years of leasing, she was growing tired of the constant rent increases. The new space, located at 631 Folsom Street, is in a prime location for her growing business.

“We were leasing the same space for 18 years, and every time our lease would expire, our rent would increase by 20, 30, even 40 percent,” said Rains. “It was a very stressful and frustrating thing to go through. Now, we’re in the middle of San Francisco’s technology hub.”

“Now, I’m paying myself rent, so I’m able to build equity not only for me but for the company. Also, I will save $100,000 in taxes just from owning my own office, which is going to create more cash flow,” said Rains, who described her experience with Capital Access Group as “amazing.”

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Capital Access Group Provides Calitho With $3,340,000 in SBA 504 Funds to Purchase Property and to Construct a 19,000 Sq. Ft. Building

Capital Access was thrilled to provide Calitho with $3,340,000 million in SBA 504 funds to purchase a 40,000 sq. ft. vacant parcel and to build a 19,000 sq. ft. light industrial building on Stanwell Drive in Corcord, CA. The new facility completes a campus-style operation that includes four buildings within a two-block radius.

This was Calitho’s second 504 loan from Capital Access Group. Calitho Vice President Bahman Taheripour “loves” the 504 program, because of the low down payment. “When you’re in business, you need access to capital. I would rather have access to money so we can expand our business rather than tie it into the real estate as a down payment.”

“When we were ready to build the new facility, we just called Capital Access and they took care of everything,” said Taheripour. “It’s so easy, it’s unbelievable. I tell my friends who are small business owners leasing space that the best thing to do is get a 504 loan and buy their building. It makes a whole lot more sense for a small business to own the building.”

“At Capital Access, we believe building ownership changes the trajectory of a small business,” said Jacklyn Jordan, President and CEO, Capital Access Group. “The program’s low down payment, fixed-rate, long-term financing allows companies like Calitho to preserve cash and to focus on growing the business, which creates jobs and strengthens the community. Calitho has already added 20 employees as a result of the new building and expects to add an additional 25-30 employees in the next year.”

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Strides Riding Academy secures $2.5M 504 loan to purchase 20-acre equestrian facility in Petaluma, CA

Capital Access recently helped Maggie Clancy, the owner of Strides Riding Academy, access $2,540,000 in financing to purchase a 20-acre, full-service equestrian facility located at 100 Lynch Road, Petaluma, CA. The SBA 504 loan enabled Clancy to purchase the property and add a boarding facility to generate additional revenue for the business and to serve the needs of the local horse riding community.

“The biggest advantage to the 504 loan was definitely the low down payment,” said Clancy. “The other advantage was being able to show that my business would support the purchase.Capital Access Group looked at my business plan, and their analysis went way beyond the numbers. This purchase would not have been possible with a conventional real estate loan.”

Owning the property has made a big difference for Clancy and her business. “Ownership allows us to make the structural changes needed to improve the property,” said Maggie Clancy, Owner, Strides Riding Academy. “It also gives clients confidence bringing their horses here for boarding services, because they know we own the property and that we’re going to be here for the long-term.”

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Prime Mechanical Service, Inc. buys warehouse in Livermore, CA with $2M SBA 504 loan

Capital Access Group, a San Francisco-based commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses, recently helped Prime Mechanical Service, Inc., purchase an 8,401 sq. ft. warehouse space located at 296 Wright Brothers Avenue in Livermore, CA. Owned by John and Sandra Eshelman, Prime Mechanical Service is a premier provider of leading edge HVAC systems and maintenance services. This is the second facility purchased by Prime Mechanical with support from Capital Access Group and the SBA 504 loan program.

In 2013, Capital Access helped Prime Mechanical purchase its first building, a warehouse space at 264 Wright Brothers Avenue, just down the street from the new location. As the business grew, the owners recognized that they would need a larger space, so they reached out to Capital Access again.

“Capital Access helped me determine what I could afford, and from there, I was able to figure out which properties I could make an offer on. That way I wasn’t spinning my wheels,” said John Eshelman, Owner, Prime Mechanical Service, Inc.

The new warehouse is larger, and it includes second-floor office space and a “full-blown sheet metal shop,” according to Eshelman. Prime Mechanical purchased the facility and absorbed the existing sheet metal business, including 10 workers. The company now employs 30 people and expects to hire an additional 10 in the next two years.

“The sheet metal shop adds to our services, and it enables us to manufacture our own duct work and accessories, bypassing the middleman and enabling us to bid on bigger jobs and take on more work with shorter downtimes,” said Eshelman.

Prime Mechanical took advantage of the IRS 1031 “like-kind” exchange, which allows tax-free swaps of one asset for another.

“Capital Access helped with 1031 exchange, too,” said Eshelman. “They were able to work with that and allow me to take the gain from the sale and transfer it over tax-free to purchase the new building.”

“We were so pleased when John reached out to us and impressed with how much the business has grown,” said Cara Rudy, Vice President, Capital Access Group. “John and his team clearly recognize the value of the SBA 504’s low down payment and low, long-term, fixed interest rate. We enjoyed helping them through the entire purchase process, including pre-approval, financing, and the 1031 exchange.”

“I just can’t express how grateful and impressed I am with Cara and her team at Capital Access,” said Eshelman. “Obviously, the 10% down payment was very appealing to me. The low down payment allowed me to free up cash flow to put toward the development of the business. The whole process was seamless and flawless. It went very smoothly, and I couldn’t be happier.”

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Entrepreneurs Clean Up with 504 Funds to Launch The Laundry in SF’s Mission District

Gianmatteo Costanza and Andrew Swerdlow, were pleased to find a “different kind of lender” interested in listening to an “out-of-the-box approach” for their new business, The Laundry, an 8,950-square-foot building located at 3359 26th Street, San Francisco, CA, in the heart of the City’s Mission district.

The building, a former industrial laundry, was the inspiration for Costanza and Swerdlow’s plans to launch a flexible art space for people “who are concerned with creating and changing the world in the widest sense,” according to Gianmatteo.

The Laundry features a café with a local coffee roaster and an art gallery that is reserved for community members during the day and doubles as an event venue in the evening for workshops, lectures, immersive theatre, and events that combine art and technology.

“I have only praise for Capital Access Group,” said Costanza. “They are really good partners. Our business plan anticipated having all of these disparate elements coming together, and we would not have been able to implement the full vision without this kind of backing.”

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