After searching for so long, a Bucks County business owner has finally found the right property that perfectly suits her unique business – and the right loan to finance it.
The Situation
Karen Pound, owner of Pine Creek Sport Horses, was spending most of her day managing her schedule, and less of it running her business. The problem was that she was continually reaching capacity at her leased spaces for teaching lessons, horse training and boarding, and the multiple locations were spread out over a wide geographic area, creating a lot of travel time. Karen’s clients said they would gladly come to her at a single, larger location. Karen just needed to find the right place.
The Solution
It wasn’t easy finding a property that could support almost 30 horse stalls, an indoor arena, a residential home and a detached garage. Once Karen found 15 acres of perfection in beautiful Newtown, Bucks County, she knew it was ideal but she needed a bank and a loan that were willing to help finance it.
Working with WSFS Bank, Seedcopa was able to work with Karen to secure a $1.3 million SBA 504 loan, with 50% of the amount covered by the bank, 35% covered by the SBA and 15% equity contributed by the borrower.
Now all horses, students, boarders and managers can all be in the same location. This leaves more time for teaching lessons, training horses and continuing to grow revenue and profitability.
“I didn’t really know where to start. I had never purchased property before, and I wasn’t sure whether it was even a smart business decision to do so,” says Pound. “I met with Marie from Seedcopa and Marcia, and they walked me through every step.”
Key Points
SBA 504 loans are ideal for borrowers who can demonstrate past and future success. Karen was able to draw on experience immersed in her family’s business of boarding horses, credentials including working with two international grand prix riders, as well as a history of growing a loyal customer based that led to continued growth. The SBA 504 loan offered a fixed, below-market interest rate and so much more:
- Interest rates are fixed for the life of the loan. The term and rate of the loan is either 10, 20 or 25 years.
- Total projects can be over $12 million and even larger for manufacturers.
- The SBA 504 loan requires equity from the borrower that can be as little as 10 percent.
- Depending on the appraised value, no further collateral beyond the subject property or equipment is required.
- Many fees and costs can be wrapped into the total project.
