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Ice Cream Manufacturer Purchases Rental Property

La Michoacana ice cream parlor exterior with crowd

It’s one of the most beloved businesses in Kennett Square, Chester County, PA. With homemade ice cream-making spanning 21 years, this is the place where family memories are made and revived each summer. And now La Michoacana Homemade Ice Cream has room to grow thanks to an SBA 504 loan that enabled the owners to purchase the first-floor property they were renting, as well as expand ice cream-making operations to a second-floor space upstairs and detached garage.

“We were renting 2,736 square feet where we not only packed in all of our ice cream making equipment – we also packed in customers on some really hot days. We desperately needed the space, as well as the ability to serve more customers at a location that has served us well and is a staple in our community,” said business owner Noella Scharon.

“This was a project where we were clearly able to show value to the community, as they wholesale their products to more than 100 businesses in Pennsylvania and New Jersey and serve 35 flavors to walk-in customers,” said Seedcopa + SeedcoDE Senior Vice President, Relationship Manager Marie Shires.

Working with lending partner Mid Penn Bank, Seedcopa + SeedcoDE was able to facilitate loan approval by demonstrating the business’s intention to boost wholesale operations with equipment purchases designed to save time, labor and expenses. Previously, approximately 40% of the company’s revenues came from wholesale, and 60% came from on-site sales. Kutztown Small Business Development Center (SBDC) assisted in documentation, including projections.

The SBA 504 loan with a below-market interest rate funded in August 2023. Now more than 75 flavors of in-house ice cream, sorbet, popsicles and smoothies are manufactured at the property on 231 State Street in Kennett Square, with rave reviews of the corn-flavored ice cream and the avocado with chili ice cream on a pretzel cone.

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For almost forty years, Seedcopa + SeedcoDE has helped businesses get the money they need to start, grow and expand. We are proud that the loan programs we work with promote economic development.

Together with economic development partners throughout Pennsylvania and Delaware, we help to grow local businesses, create and retain jobs and stimulate local communities.

Our team has over 75 years of combined government lending experience and a dedication to excellent customer service. After our initial assessment of your project, our commitment is to get you approved and closed.

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