Eby Construction Says Goodbye to Bay Area Rent Spikes and Purchases Property with an SBA 504 Loan Administered by TMC Financing
Brian Eby, Owner of Eby Construction, was faced with a rent more than doubling when the building he occupied sold to a new owner. His solution was purchasing a warehouse of his own by utilizing the SBA 504 Program. With the 504 Loan, Eby was able to obtain 90% financing and a 20-year, below-market interest rate.
RICHMOND, Calif., July 16, 2019 /PRNewswire-PRWeb/ -- TMC Financing (http://www.tmcfinancing.com), a commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses, recently helped Brian Eby, Owner of Eby Construction, secure $2 million in total project financing through the SBA 504 commercial real estate loan program. The funds were used to purchase a warehouse located at 26 20th Street in Richmond, CA. The acquired property replaced their leased space, enabling the company to significantly reduce their monthly occupancy costs. The purchase has also given Eby a sense of security and peace of mind in the face of chronically elevating rental rates in the Bay Area.
Eby has had a life-long love for carpentry. He completed his first piece, a blue bank of drawers when he was just 12 years old. From working on cars with his dad in high school to building cabinets throughout college, Eby has always had a knack for working with his hands.
Eby founded Eby Construction in 2005. A cabinet and millwork shop, Eby Construction specializes in tight tolerance, mixed material finishes within single family homes, high-rise apartments, and modern commercial settings. They spend extensive resources and time designing and detailing their product, as well as synchronizing their efforts with other trades for function and finish. Their services include cabinet design, manufacturing and installation, shop drawings, furniture design and manufacturing, and wood finishing.
While Eby Construction has seen consistent growth throughout their time in the Bay Area, they could not sustain the Bay Area rent hikes.
"Before discovering the SBA 504 Program, we looked into buying a property for our business," explains Eby. "We thought it was too ambitious for us. Then two weeks later our landlord sold our building and our rent more than doubled with the new owner. That's when we finally realized we needed to buy our building if we wanted to continue operating in the Bay Area."
By utilizing the SBA 504 Program, Brian was able to buy a building with only 10 percent down and a 20-year, below market interest rate. In addition to the building, Brian was also able to finance electrical upgrades, infrastructure set up, solar panel installation, and a new roof.
"The interest rate is great but what sealed the deal for us was the 10 percent down payment," states Eby. "We wouldn't have been able to purchase a building if we had to put down the capital required with conventional financing."
As for working with TMC Financing, Brian said, "The whole process with so efficient with the help of the TMC Team. They were thorough, organized, and guided me through the entire process."
"It was such a joy to help Brian secure the financing he needed to make the switch from renting to owning," said Kurt Chambliss Executive President, TMC Financing. "We strive to provide fast, affordable financing for small businesses like Eby Construction so they can flourish in their community while working towards future growth."
"Owning our building is such a relief. We no longer have to worry about our occupancy costs spiking without warning," said Brian. "The mortgage payment on our new building is less than what we were paying in rent and now we have a building to call our own."
SOURCE TMC Financing
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