Small business owner and former Navy pilot Kevin Darroch tried for five years to find a bank that would lend him money to buy a commercial building for his company. He couldn’t get even a nibble.
Darroch’s company, MachineTek in Carlsbad, which manufactures honeycomb core components for the aerospace and defense industries, was coming through some lean financial years and Darroch had limited capital for a down payment.
Enter a creative financial partner – CDC Small Business Finance – which along with Avana Capital devised a unique way to structure a $2.4 million SBA-504 loan that ended with a successful funding of a building Darroch can now call his own. He will save $2,000 a month by owning rather than leasing, and he has secured the future of his company by ensuring the property will not be sold out from under him.
And an extra bonus: because Darroch is a disabled military veteran, he will save $3,000 in closing costs via CDC’s VetLoan Advantage program which eliminates some loan fees for vets.
Loan officer Merri Adams of CDC facilitated the MachineTek loan. Commercial real estate brokers involved in the transaction were Mike Erwin and Tucker Hohenstein of Colliers International.