TMC Financing provides SBA 504 loan for Choicelunch, provider of locally sourced school lunches.
May 19, 2014 (Newswire) - TMC Financing today announced that Choicelunch has purchased a facility in Anaheim with a 20-year, fixed-rate, SBA 504 loan for $2.4 million. The property, located at 1126 -1136 North Fountain Way, will house a commercial kitchen, office, and additional industrial space totaling 29,185 square feet. The financing enables Choicelunch to expand their growing business, hire an estimated 60 new employees, and retain working capital with a down payment of just 10%.
"By returning to TMC Financing to purchase a second facility in Southern California—complementing the current facility in the Bay Area—Choicelunch has expanded its commitment to providing healthy school lunches to children throughout California," said Barbara Morrison, President and CEO of TMC Financing. "Since the SBA requires that businesses occupy a minimum of only 51% of their buildings, Choicelunch has been able to purchase a facility with room to grow. Choicelunch will benefit from supplemental rental income to provide additional working capital and have space to expand with the success of the business in the future."
Kurt Chambliss, Senior Vice President of Business Development at TMC Financing, worked with the owners of Choicelunch to provide financing through the SBA 504 commercial real estate loan program. The lender on the project was City National Bank, based in Walnut Creek.
"Thanks to the SBA 504 loan program, we have been able to grow not only our ability to serve wholesome meals to California schools, but our staff as well. This loan also allows us to improve our operational effectiveness through upgrading our kitchen equipment and layout," said Ryan Mariotti, CFO and co-founder of Choicelunch. "TMC Financing is our go-to CDC for SBA Financing. TMC understands our business goals and knows the ropes for efficiently securing SBA financing."
Choicelunch makes it simple for busy families to live better and eat well. For more than a decade, original owners Mary and Larry Gagnon had cooked meals for local schoolchildren by receiving orders on handwritten notes from parents. But in 2003, Mary and Larry's son, Justin, along with two of his longtime friends, Keith Cosbey and Ryan Mariotti, joined the team and brought Choicelunch into the technology age. Today, parents can sign in at choicelunch.com or on a smartphone mobile app to order lunch for their child. All lunches are prepared from quality ingredients; fruits and veggies are locally sourced, and meats are antibiotic free. For more information, visit choicelunch.com.
TMC Financing provides Small Business Administration (SBA) 504 real estate financing and is the leading Certified Development Company (CDC) in Northern California and Southern Nevada. In the past 30 years, TMC has provided over $7.5 billion in SBA 504 financing for more than 4,500 businesses. This financing has resulted in the creation of over 33,000 jobs. TMC has been ranked in the top five Certified Development Companies nationwide for over a decade. For more information, visit tmcfinancing.com.
About the SBA 504 Program
The SBA 504 Program offers businesses below-market, fixed rate financing for the acquisition, renovation or construction of commercial real estate. SBA 504 loans provide long-term stability for businesses with the ability to retain working capital which can be used to further grow the business and create new jobs. The March SBA 504 interest rate is 5.28% fully fixed for 20 years. The typical loan structure for an SBA 504 loan comes from a first mortgage with a conventional lender and a second mortgage from a certified development company (CDC).