Learn how these small business entrepreneurs are thriving after SBA loan helps them ditch costly, fast-cash loan in favor of affordable capital.
The Situation
Jason Berry and Stuart Hecker, veterans in the tire service industry, decided to start their own business – Becker Tire and Service Center in Santa Ana. But a sluggish economy made it difficult to keep their doors open. Desperate, they turned to an online lender for fast cash, but the move backfired when they discovered they were paying the annual equivalent of 42% interest. The partners tried to refinance the loan with a national bank and were denied. As creditors were pressuring them, they searched for another source for capital.
Solutions
Jason and Stuart realized a nonprofit lender might be more flexible. They approached CDC Small Business Finance, which was willing to listen to their story rather than judge their business solely on the numbers. In evaluating their loan application, CDC Small Business Finance loan officer
Stacey Sanchez concluded that they had good industry experience, marketing strategies and operational expertise which made them a good candidate for an SBA loan product.
Stacey worked closely with Jason and Stuart to help them get approved and funded.
CDC Small Business Finance funded Becker Tire a $125,000 SBA Community Advantage loan (only 7% interest) to pay off the usurious online lender and provide enough working capital to get out of financial danger.
Stacey was able to provide Becker Tire with a significantly more affordable and sustainable 7% loan; a significant breather from the 42% interest they were incurring with their fast cash loan from an online lender.
Results
Jason and Stuart are saving thousands of dollars a month in interest by escaping the burdensome online loan with the help of SBA financing.
Returned to financial health, Jason and Stuart expanded their business and now own three tire stores in Orange County that regularly receive 5-star reviews on Yelp.
Becker Tire now employs 20 people and is contributing to the economic vitality of the cities of Anaheim, Orange and Fountain Valley.
As Becker Tire continues to grow, Jason and Stuart’s vision is to deploy a fleet of mobile service vehicles (tire stores on wheels) throughout Orange County and Los Angeles.
Small businesses have viable loan alternatives to banks and pernicious online lenders.
Read about these other small businesses that escaped high-interest loans:
Award-winning caterer overcomes challenges with affordable financing
Furniture maker finds affordable capital to pay off expensive online loans, set stage for growth
