Recently Funded Deal: Sneaker and Sportswear Online Retailer and Wholesaler
- An online retailer and wholesaler of sneakers and sportswear based on Long Island, NY needed to expand and consolidate the various warehouse and retail spaces it was leasing.
- A partner bank referred the owners to The 504 Company to pursue financing through the SBA 504 program to purchase a larger space and consolidate operations into a single location.
- The SBA 504 loan program funded $1.29 million of a $3.15 million property purchase in Bohemia, NY.
- The borrower benefitted from low, fixed-interest rate financing and a 20-year term, and the 504 loan closed simultaneously with the bank portion of the financing.
- The loan allowed the borrower to purchase and move into a 26,600 sq. ft. building giving them the ability to manage and grow inventory more efficiently, organize shipping and fulfillment operations, and focus on expanding product lines essential for growth.
- With the move to the new facility, the borrower experienced an estimated $10,000 in annual cash flow savings, and will no longer be subject to increases in rent with the purchase of their own space.