Best USA to Create Up to 25 New Jobs With $11.2 M SBA 504 Loan From Capital Access Group
San Francisco, CA, June 8, 2016 (Newswire.com) - A third-party logistics company will be able to accelerate growth and create efficiencies in a brand new building thanks to a loan from Capital Access Group (www.capitalaccess.com), a commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses. The development company announced today that it arranged just over $11 million in total project financing for Best USA Logistics, Inc., for the purchase of an 83,525 sq. ft. building located at 675 Sycamore Drive, Milpitas CA. Best USA currently has 95 employees. The new facility will support the creation of 20-25 new jobs.
Best USA is a third-party logistics company that provides turnkey, one-stop, reverse logistics services for manufacturers of computer and wireless telecommunications products. Services include the repair and refurbishment of products under warranty, dispatch of spare parts, storage and packaging, order fulfillment, and final assembly and rework.
“The 504 program allows us to accelerate our business growth,” said Leo Lo, Vice President, Best USA. “We only needed to prepare the 10 percent down payment, which gave us more cash flow, and protected us from increases in the rents we were paying.”
The new facility will enable the company to create efficiencies by combining all of their one-stop services, plus it includes space for a research and development lab and new lines of business. “The building’s electric and cooling infrastructure will be slightly upgraded to support the new business, and the new facility includes a warehouse to support clients’ assembly, warehousing, and shipping needs,” said Lo.
“The new lines of business include one called New Product Introduction (NPI), which includes testing, assembly, and rework for new products” said Lo. “The other new service is our eCommerce platform, which provides customized on-line shopping and logistics solutions to customers who want to break into the Chinese ecommerce business.”
“We are so pleased to support Best USA’s growth through SBA 504 financing,” said Cara Rudy, Vice President, Capital Access Group. “The company has been leasing two separate facilities, so the new facility will stabilize occupancy costs and enable the consolidation of the current facilities, while providing ample space for growth, including ecommerce sales, which is very exciting.”
“I’m so appreciative to the team at Capital Access Group,” said Lillian Chang, Owner and Group President, Best USA. “They were friendly, efficient, professional and helpful with our SBA loan application. I would give them the highest rating possible. They are the best!”
About Capital Access Group: Capital Access Group is a leading statewide Certified Development Company based in San Francisco, authorized by the U.S. Small Business Administration to provide long-term, fixed-rate financing through the SBA 504 loan program, which offers 90% financing to business owners for the purchase, renovation, or construction of commercial real estate for their growing businesses. Founded in 1981, Capital Access Group has helped thousands of entrepreneurs grow their businesses and realize their dreams of owning their own buildings. Currently, the SBA 504 interest rate is 4.32%, fully amortized and fixed for 20 years. For more information, please visit www.capitalaccess.com.
Source: Capital Access Group