Impact Investment Supports Veteran to Expand Men’s Fashion Small Business

Hobbies are considered something we do on the side, after the important work of a day or week is done. Not so with Montee Holland of Detroit. His hobby became a siren’s song of style that lured him into a new vocation and the world of men’s fashion.

From an early age, Montee was always intrigued with the way his athletic coaches and businessmen dressed: tailored suits, colorful shirts and ties, and shoes to complement the trendy attire.

“I always liked how clothes distinguished the male role models in my life,” said Montee. “My coaches in high school and college were proud men and always dressed nice. I liked that.”

When he joined the Marine Corps right out of high school and was stationed in Japan and Korea, Montee often found himself on weekends strolling into clothing shops, surveying the men’s fashions on display. It piqued his creativity. He’d select different fabrics and combinations of trimmings and have the shop owners tailor suits for him.

“People began to notice and compliment me on my designs which inspired me to make more,” Montee recalled.

Evolution of a Hobby

Honorably discharged from the Marines, and back in his Detroit home, Montee started designing classic, high-fashion suits for friends, which in turn generated more attention and buzz. But his penchant for assembling unique looks in men’s clothing remained just a hobby as he completed graduate school, tried his hand at teaching high school and was then recruited by Pfizer where he worked as a sales representative for seven years. All the while the call to make clothing design more than a side gig became louder until he could no longer ignore his passion.

Newly determined to turn his avocation into a small business, in 2003 Montee loaded a trunk with his most dapper suits and displayed his Tayion brand (his middle name) at a booth at the Las Vegas Magic Garment Industry Convention. Would-be buyers stopped in their tracks to admire his eye-popping collection, including TV celebrity Steve Harvey, host of Family Feud.

“At the time, Steve was promoting a line of men’s clothing of his own, but he wanted his brand to look more like mine,” said Montee. “Steve took me under his wing and the following year, he hosted my Tayion brand in his booth.”

Montee’s association with Steve Harvey attracted more attention. Peerless Clothing ― the largest producer of fine-tailored clothing in North America ― took note and licensed the Tayion brand as part of the company’s family of brands sold primarily in Macy’s department stores nationwide.

“Peerless wanted more variety in their product lines and the Tayion brand was a good fit,” said Montee. “They appreciated my gift for pairing different fabrics and styles into ready-to-wear suits that looked tailored.”

Financial Investment Program Provides Pathway to Brand Expansion

Through Montee’s new affiliation with Macy’s, he learned about an innovative funding program created in collaboration between Macy’s, Inc. and the Momentus Capital branded family of organizations, which invests in and lends to entrepreneurs.

Needing an injection of funding to take his Tayion brand to the next level, Montee applied and was accepted into S.P.U.R. Pathways: Shared Purpose, Unlimited Reach, a multifaceted funding program designed to advance entrepreneurial growth, close wealth gaps for emerging entrepreneurs . Through S.P.U.R. Pathways, Montee was approved for financing to help him expand Tayion production and digital marketing. Since the program’s launch in late 2022 (through early 2024), S.P.U.R. Pathways has deployed more than $9.2 million of critical funding, with the average loan totaling $400,000.

“Montee was impressive because he’d built Tayion largely on his own and already demonstrated a high level of success. He was a perfect fit,” said Elisabeth Chasia, former investments director for the Momentus Capital branded family of organizations.

In addition to expanding the types of accessories he produces as part of his flagship Tayion Collection, Montee has created another men’s clothing line called T-Fusion, a brand designed for more price-conscious consumers. Projections indicate he’ll achieve double-digit profitability through 2026 as he generates more revenue from licensing and direct merchandising.

The years of hard work and overcoming barriers have not dampened Montee’s enthusiasm for the business. With the leverage gained from his new financing, he’s on the threshold of taking another leap forward in turning heads with his fashionable designs.

“I still get pumped up as much now as I did when I first started making my own suits,” he admitted. 

And for would-be entrepreneurs willing to bet on themselves, he offers this advice: “If you hear that little voice in your head and match it with conviction and passion, you will succeed.”

Redline Quality Cars becomes a building owner, fulfilling the need for additional lot space, additional employees, and more shop space, thanks to an SBA 504 loan from Phoenix-based CDC Small Business Finance.

Ivan Guzman had leased his commercial auto body shop space for nearly 10 years — until he was notified that a group of investors purchased the property.

Guzman’s family has been in this industry for three generations. Redline Quality Cars opened in that location when he was 22 years old. Their lease agreement had expired and was month-to-month. The amount of space was no longer suitable either. Guzman had to make a huge decision about the future of his business.

Not only did he have to think about whether to stay or move, but also about whether to continue leasing or take the next step and purchase property for his business.

“It was not easy,” Guzman said. “My family and I came together and decided to pursue purchasing commercial real estate, rather than sign a new lease with a new landlord. My grandfather had a body shop that he ran for many years. My father continued the legacy. And now it’s me, hoping to take it to another level by purchasing our own building.”

To move his business forward, Guzman not only needed to find a new location — he also needed to find the right lender to help.

An SBA 504 Loan Gave Redline the Green Light

Guzman and his bank were referred to Belinda Rosthenhausler, vice president and commercial lender for CDC Small Business Finance in Arizona and Nevada. The mission-driven organization, headquartered in California with an office in Phoenix, specializes in SBA 504 commercial real estate loans and is the #1 SBA 504 lender in the country.

(CDC Small Business Finance is part of the Momentus Capital branded family of organizations, which also includes Capital Impact Partners and Ventures Lending Technologies, among other organizations.)

The SBA 504 commercial real estate loan is often the preferred financing product for small business owners looking to purchase real estate for their business. Entrepreneurs can obtain long-term, fixed-rate financing for a variety of projects. Whether a business owner is buying a warehouse to help expand their business or looking to shift from leasing to ownership, the 504 loan is a valuable option and smart addition to their business strategy.

“We are here to help small business operators with reaching their goal of real estate ownership,” Rosthenhausler said. “SBA 504 loans are the program that makes the most sense when a business owner is considering purchasing commercial real estate.”

Guzman was able to have a 10% down payment through the SBA 504 loan program rather than the minimum of 25% that would have been required from traditional lending sources.

“I wholeheartedly recommend any small business owner to look into the SBA products out there that best fit their needs,” Guzman said. “The 504 loan to me was a great deal — better than what any bank could have offered on their own.”

Guzman, in turn, helped himself with the borrowing process thanks to how prepared he was.

“Mr. Guzman provided the tax returns and financials required for an SBA loan request, and I worked with his CPA compiling the information needed. Business owners should have a good bookkeeper or CPA providing financials throughout the year,” said Rosthenhausler. “We recommend prequalifying before entering a purchase contract, since timing is tight and inventory remains low. Sellers want to see that a buyer has secured financing prior to executing a purchase contract. Ivan was prepared for the loan request, and his CPA had everything in order.”

More Space and More Jobs

Over the past several years, Redline Quality Cars had seen increased business thanks to several new accounts with local auto dealerships, as well as referrals from insurance companies. But business operations had hit maximum capacity due to the size of their building; they’d been forced to turn away some customers.

So the change in building ownership provided Guzman and his family with the extra nudge they needed.

Now Redline Quality Cars has moved from renting a 4,000-square-foot space into owning its new, 6,000-square-foot home on 7829 N. 68th Ave., in Glendale, with much more room to work on and store vehicles that are being repaired. That includes installing a paint booth, an important tool for repairing vehicles that have been damaged in collisions.

“Belinda and her team were great in assisting us through the loan process,” Guzman said. “They helped us with the building purchase, plus improvements and equipment needed.”

Guzman was able to retain four full-time equivalent positions and, with more room now to help more customers, believes he can add another three positions over the next two years.

“This has to be one of the most fulfilling accomplishments that I have experienced in my 31 years,” Guzman said. “My family, co-workers, and friends were all very proud of what had just taken place. We had not thought about purchasing in the past, but the thought of closing the shop because we didn’t have a new location was out of the picture.

“My whole life has been related to my field of work and has defined me,” he added. “I know what it takes to be a master technician, and now I know what it takes to own a more functional building.”

Learn More About SBA 504 Loans

The SBA 504 loan structure continues to be in high demand, despite rising interest rates. The 25-year fixed interest rate option provides a controlled budget for business owners who are seeing lease rates continue to climb.

CDC Small Business Finance continues to be an economic development leader as an SBA 504 lender, with 26 loans in the Arizona district totaling $18.56 million for the period from October 2022 through March 2023.

Among the businesses Rosthenhausler and her colleagues have supported are a company that provides physical therapy, occupational therapy, and speech therapy to elderly patients; an artificial turf installation company; and a corporate audit services firm.