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Recently Funded Deal: Law Firm

Recently Funded Deal: Law Firm

Situation:

  • A law firm serving the Mandarin-speaking community in the metro New York region needed a new office space to accommodate its growing business. It was previously operating with just two work stations in a 1,200 square foot office.
  • The firm sought to improve their space issue by leasing a second location at the beginning of 2018, but quickly closed it as employees found it unproductive and inconvenient to travel between two locations.
  • The firm’s owners identified a new, larger office location to purchase, and a partner bank referred the business for 504 financing.

Solution:

  • The 504 Company financed $780,000 of a $1,950,000 project to help the company purchase its larger office space. While the project qualified for the 10% owner equity contribution that is typical for 504 financing, the owners elected to contribute 20%.

Impact:

  • Thanks to the larger office space, the firm is able to take on the employees needed to handle the growing demand for its Mandarin-language legal services. Now, more individuals from the local Chinese community can receive legal services in their own language.
  • The new property is located a quarter-mile from the old location, allowing all existing employees to retain their jobs. An additional 10 full-time equivalent jobs will be created.

 

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