From Renters Threatened with Eviction to Stable Building Owners, LoCoco’s Thrives Following SBA 504 Loan Administered by TMC Financing

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LoCoco's has been voted the North Bay's Best Italian restaurant for 12 years straight. Despite their popularity, they were in jeopardy of losing their operating location. Thankfully, they were able escape eviction and managed to purchase the building with only 10% down by utilizing the SBA 504 Program.

Joe LoCoco, Owner of LoCoco's

“Owning our own building has always been a goal of ours but financially it just never made sense. The 10% down feature of the 504 Loan made this possible for us. We were able to acquire the property but still have adequate capital reserved for other business expenses.”

LoCoco’s Cucina Rustica in Santa Rosa, California is a favorite amongst locals and visitors alike, demonstrated by patron’s willingness to regularly wait over an hour for a table. The restaurant is known for its homey feel, energetic vibe and of course their authentic Italian food.

TMC Financing, a commercial real estate lender specializing in SBA 504 loans for growing businesses helped the proud owners of LoCoco’s, husband and wife team of Joe and Kendal LoCoco, purchase the building that they were previously leasing for their restaurant. By utilizing the SBA 504 Program, the LoCoco’s were able to purchase the 12,000 SF building with only a 10% down payment combined with a 20-year fixed interest rate.

“We now have a sense of security,” explains Joe. “When we were renting, the thought of our rent doubling or even losing our lease altogether was always in the back of our minds. Now that we are the owners of the building, we can concentrate our efforts on growing the business and ensuring we exceed our patrons’ expectations.”

“Owning our own building has always been a goal of ours but financially it just never made sense,” states Joe. “The 10% down feature of the 504 Loan made this possible for us. We were able to acquire the property but still have adequate capital reserved for other business expenses.”

Anna O’Brien, SVP of TMC Financing, facilitated the deal and was thrilled she could help Joe and Kendal realize their dream of owning real estate for their restaurant.

“The SBA 504 Loan was a perfect fit for LoCoco’s Cucina,” explains O’Brien. “They were a successful restaurant with a line regularly out the door, but they were at jeopardy since they weren’t the owners the building. Now, they continue to thrive but are able to write their rent checks to themselves while building equity each month.”

The SBA 504 loan program allows small business owners to finance fixed assets such as commercial real estate or equipment, with a below-market, fixed interest rate. SBA 504 loans can be used to finance the total project cost, which can include the purchase price, construction/renovations, soft costs and can even be used for refinancing. A typical 504 loan project requires a down payment of only 10 percent from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a certified development company. By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides long-term stability to businesses and communities.

LoCoco’s, voted the best Italian restaurant in the North Bay for 12 years, has sights set for future expansion and plans to repeat the process with TMC Financing.

“Every person that helped us throughout the entire process truly felt like they cared. Everyone was helpful, supportive, and just great all the way around. We were surrounded by positive and encouraging people with every step and it meant so much to us.”

More About SBA 504 Real Estate Financing
The Small Business Administration 504 Loan Program allows small-business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the total project cost, which can include the purchase price, construction/renovations, equipment, soft costs and closing costs. By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides businesses and communities long-term stability. Business owners can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website.

Contact TMC Financing
TMC Financing is one of the nation’s top-ranking CDCs and a Premier Certified Lender with the SBA. If you are thinking about buying your own commercial property in California or Nevada, talk to one of our local 504 loan experts. Regardless of where you are in the process—TMC Financing can help guide you through the next steps and help you with the pre-qualification process.

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Lindsey Paley
@TMCFinance
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