MILPITAS, Calif., Jan. 14, 2020 /PRNewswire/ -- TMC Financing, the nation's No. 1 SBA 504 lender, recently helped Laser Alliance purchase a building to house their business by utilizing the SBA 504 Program. Laser Alliance obtained 90 percent financing to purchase the building located at 1646 Watson Court in Milpitas for $1.8 million. By owning their property, the husband and wife team have escaped an ever-increasing rent and can now adequately plan for the future due to their stable and predictable occupancy costs.
Laser Alliance was established in 1994 and is run by Alan Vien and Francette Huynh. According to Huynh, owning property and controlling their occupancy costs was always a goal. "We own our home and it was important to us to own a home for our business, too. We just never thought we were in a position financially to do so."
The SBA 504 Program opens doors for small businesses who either don't have the cash to cover the down payment that conventional lenders require and for those that choose to preserve their cash rather than tie it up in a down payment. It allows small to medium sized businesses purchase fixed assets, such as real estate, with only a 10 percent down payment and a below market, fixed interest rate fully amortized over 25 years. A 504 loan can also cover construction or renovation costs, equipment purchases, and the refinancing of commercial real estate debt.
"We had heard of SBA loans in the past but we were afraid of going that route," explains Huynh. "We heard stories of the paperwork, the delays, and the headaches – but when our landlord kept raising our rent, we decided to take our chances since we could not afford conventional financing.
"We couldn't have been more pleasantly surprised with the SBA 504 Program and the TMC team that guided us every step of the way. The expertise of everyone we dealt with was amazing. TMC has their system and organization down to a tee. It was such a blessing because I was so busy at the time and TMC guided the process along without me. We feel so fortunate that they handled our loan!"
Kurt Chambliss, executive vice president facilitated the deal on behalf of TMC Financing. "Laser Alliance was a perfect candidate for the SBA 504 Program," explains Chambliss. "Their rent was skyrocketing and they had an uncertain future, not knowing what their occupancy costs would be. They wanted stability but couldn't afford the terms for conventional financing. By utilizing the 504 program, they only had to put 10 percent down and now know their occupancy costs for the long term."
About TMC Financing
TMC Financing, the No. 1 SBA 504 lender in the nation, has secured over $12 billion in financing for more than 5,000 businesses throughout California and Nevada. Contact TMC Financing to learn more.
SOURCE TMC Financing