How do you turn a childhood gymnastics hobby into a competitive career, and then a 16,000-square-foot facility that nurtures the next generation? Main Line Gymnastics is celebrating one year since opening a multi-million dollar, custom-built gymnasium with the help of an SBA 504 loan, Seedcopa and lending partner WSFS.
The Situation
MLG owners Chelsea and Nick DiBerardinis occupied a 6,000-square foot gymnasium they’d rented in West Chester, Chester County, PA since 2015. Business was booming, but in an emerging industry that faces competition from after school programs and other child fitness activities, a conventional loan was not a realistic possibility. They needed low-interest capital from partners who saw the benefits they’d bring to their community directly by providing jobs and needed services.
The Solution
Government-backed SBA 504 loans are designed for such projects. Working with Seedcopa and lending partner WSFS, the DiBerardinis were able to purchase land just 1.5 miles from their leased facility and almost tripled their space. The building located off of the Route 202 Westtown Exit offers a massive front class area for parent and tot open play, as well as beginners classes with viewing rooms for parents. The impressive rear studio is the training ground for higher level athletes up to 14 years old, including a 20 foot x 22 foot foam block pit, in-ground tumbling area and far more stations and equipment.
Now Main Line Gymnastics services almost 1,000 young athletes and their families through classes, clinics and camps. MLG employs approximately 15 staff, coaches and class instructors.
Says Chelsea DiBerardinis, who is a former level 10 gymnast and state, regional and national qualifier, “It’s about so much more than learning to flip, twist and balance. It’s about discovering your potential, building friendships and confidence.”
Key Points
- SBA 504 loans fund both small and large projects, from $200,000 to over $16 million
- A low down payment (10% in most cases) conserves working capital
- Below-market interest rates are fixed for the life of the loan
- 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
- 10, 20 or 25 year terms
The SBA 504 Loan Consists Of…
- A conventional first mortgage, typically for 50% of the project cost, from a third-party lender like a bank or credit union
- The SBA-backed portion is a second mortgage, financing up to 40% of the eligible project costs
- The remaining 10% is typically your small business owner contribution.
Contact Seedcopa for more information.
Photo courtesy Main Line Gymnastics
