SBA 504 for a Collision Repair Center with Environmental Issues

Challenge:
An automobile collision repair center was notified that the real estate it had been leasing for several years was going to be sold by the deceased property owner’s estate.  The repair center owners wanted to acquire the 15,000 sf building rather than be forced to move.  The borrowers needed to secure financing quickly, put down the minimum amount possible, and obtain funding for some renovations.

Solution:
BDC’s 504 affiliate CDC New England provided an SBA 504 term loan in conjunction with a local bank for the $1.1 million purchase price and $100,000 of improvements.  The low 10% downpayment of $120,000 and a 20-year fixed rate was appealing.  CDC quickly obtained credit approval, but then environmental issues arose as a result of the Phase 1 environmental investigation.  CDC’s in-house experts guided the borrowers through the entire environmental due diligence process which was critical for this site given the previous property uses as an auto body repair business and truck maintenance facility.

Our fast turnaround, creative problem solving, and constant communication during the approval allowed the repair center owners to acquire the long-term location of their business – with very favorable long-term financing.

CDC New England:

    *    Fastest Loan Approvals

    *    Creative Problem Solving

    *    Constant Communication