Login ›
Follow The 504 Company on Facebook Follow The 504 Company on RSS

Latest 504 News

Recently Funded Deal: Japanese Restaurant

Recently Funded Deal: Japanese Restaurant

The 504 Company supports an established businesses purchase previously leased space





  • The owner of a Japanese restaurant in an affluent New Jersey commuter town invested significantly in leasehold improvements and repairs after an electrical fire. The owner was seeking to ensure long term stability by purchasing the property.

  • However, the property was appraised at less than the purchase price, and the current owner was unwilling to sell for a lower amount. Since the business had already heavily invested in the location, the principal was willing to purchase the property at a premium.

  • A partner bank referred the owner to The 504 Company local loan officer who recognized the fit for an SBA 504 loan.


  • The SBA 504 Loan program financed $680,000 of a $1.7 million project that allowed the business to purchase the desired property.

  • Despite the appraisal shortfall, The 504 Company and SBA approved an LTV greater than the typical 90% due to the business’s long term track record of success. The SOP allows some leeway in the appraisal requirement in certain situations. 


  • The restaurant created 3 new jobs— a new kitchen worker and two additional waiters.

  • The loan allowed the minority-owned business to continue serving the community, promoting immigrant success and diversity within the restaurant’s town.

Have a deal to discuss? Contact a loan officer today.

Share this post