Leveraging the SBA 504 Loan for Strategic Expansion: Herbert Financial Group and the Power of Collaboration

Tania Herbert grew up in Peru, where she faced extreme poverty, but she credits that time with igniting in her a determination to build a better future. “Living in Peru without clean water, without electricity, and not having food on the table when I was 5 or 6,” she reflected, “I think my drive to succeed comes from having nothing.”

She moved to the United States in 2006 as an MBA student. While advancing through her career, Tania demonstrated an ability to lead, grow teams, and achieve exceptional results, including making the Million Dollar Round Table and being named Rookie of the Year. However, during the pandemic she was let go from her executive role and experienced a short period of reflection before she decided to seize the moment and take control of her future.

Outgrowing the Basement: The Need for Expansion

Tania launched Herbert Financial Group out of her basement, and within the first year, the company achieved seven figures in revenue. As it continued to grow, she began leasing spaces. “I left the basement because I was already getting big clients, and I didn’t want to bring them to my basement,” Tania recalled. “I rented a small office, about 150 square feet, in Pasadena. From there, my clientele kept growing quickly. I then moved to a 600-square-foot office in Burbank. We kept outgrowing our spaces.”

She thought she had found a great spot in Monrovia with a lease-to-buy agreement, but near the end of the lease, the owner advised she would not be able to purchase the property. Tania knew she had to find a permanent home for her team. 

Discovering the SBA 504 Loan

Knowing Herbert Financial Group needed a new location and only had a short amount of time on her current lease, Tania sought guidance from Bailey Wolff of Harvest Commercial Capital LLC. The two had already been working together, and she was hoping he could help.

Recognizing her vision and determination, Bailey introduced her to the SBA 504 loan, and he let her know that it could provide the long-term, fixed-rate financing she needed to purchase a building and consolidate her growing team under one roof.  

Bailey had cut his teeth working for the New York District SBA office before coming to Harvest and knows the program well. He also knew he had the perfect partner to help get Tania her loan. “I called Janine because Janine is amazing,” he said of Janine Peltier, loan officer for CDC Small Business Finance. “And Janine is very fast.”

Janine jumped at the opportunity to support Tania and collaborate with Bailey again. She appreciates the trust that partners like Harvest place in CDC Small Business Finance, and their “confidence in our dedication to prioritizing their clients’ needs and our expertise with the SBA 504 program.”

Navigating the Loan Process with Trusted Partners

Working together, Janine and Bailey helped Tania navigate the complexities of the SBA 504 loan application. Despite facing challenges, including a previous financial setback, Janine helped guide her through the process: “We got the documentation, we put together the letter of explanation, using the SBA as the second chance lender, and she got approved.” The approval not only secured her new property but also boosted her confidence. As Janine recalls, “When her approval came over, she was ecstatic. So, I think she finally understood the power of the program.”

The SBA 504 loan was particularly beneficial because it offered favorable terms, allowing Tania to preserve capital for future growth. Bailey noted, “Tania wanted a fixed rate that comes with the 504 program, wanted a long term that comes with the 504 program, and then the best interest rate available at the time.”

The successful acquisition of Herbert Financial Group’s new office space, achieved through a true team effort with Janine Peltier and Bailey Wolffe’s expertise and support, illustrates the power of choosing dedicated partners.

Empowering Underserved Communities

Tania’s dedication to her clients and her community resonated with both Janine and Bailey, making them eager to support her ambitious goals. Janine shared her admiration for Tania’s journey. “She worked in the industry for many people and really never took a chance on herself. When she did, she was wildly successful.” Janine added that Tania utilizes her proficiency in English, Spanish, and Portuguese to “cater to and help many people in underserved communities.”

For Bailey, it was clear from the beginning that Tania’s commitment to her clients and her vision for growth set her apart. “The whole point of the program is to help business owners that can’t get help otherwise,” Bailey explained, illustrating how the SBA 504 loan program enables entrepreneurs to purchase commercial real estate with a low down payment and less than perfect credit.

Strengthening Operations with a New Headquarters

The SBA 504 loan has had a transformative impact on Herbert Financial Group’s operations. Janine emphasizes the operational efficiencies gained through the expansion: “By having this location, she will be able to have all of her staff in one location, and she’s adding on.” This is echoed proudly by Tania, who said, “We have a building with 25 employees now, and we’re adding more.”

Furthermore, the loan has positioned Tania for future growth. She’s aiming to open 12 offices across California, an ambitious goal supported by the financial stability that comes with owning her own property. “We are looking to hit $8 million in revenue this year, and we’re forecasting $10 million next year,” Tania shared, underscoring her business’s impressive growth trajectory.

Reflecting on the importance of the SBA program, Bailey shared, “We fill a need in the marketplace to help where conventional banks just—they’re just not set up for that loan.” For Tania, this program was not just about securing a loan—it was about securing a future for her business, her clients, and the communities she is passionate about serving.