Environmental Remedies, Inc., Cleans Up With $1.683 Million SBA 504 Loan From Capital Access Group; New Building in Hayward, CA Gives the Company Room to Expand
San Francisco, CA, February 11, 2016 (Newswire.com) - Capital Access Group (www.capitalaccess.com), a commercial real estate lender specializing in U.S. Small Business Administration 504 loans for growing businesses, announced today that it arranged $1.683 million in total project financing for Environmental Remedies, Inc. (ERI), for the purchase of a 14,492 sq. ft. building located at 1999 Alpine Way, Hayward, CA. This was ERI’s second SBA 504 loan through Capital Access Group. The new facility will create up to 12 jobs.
ERI is a family-owned and operated asbestos, lead, and mold abatement contractor that serves residential and commercial clients throughout Northern California. The company’s highly trained experts have completed thousands of projects for homeowners, contractors, insurance providers, and government agencies.
ERI’s new building—twice the size of their current facility—will stabilize the company’s occupancy costs and give it the room it needs to expand and function more efficiently."The biggest benefit in deciding to go with the 504 loan as opposed to a conventional loan was the lower up front costs. For a small business like us, being able to put down 10% as opposed to at least 20% for a conventional loan—that's a big chunk of change. It impacts cash flow and our ability to grow and hire new people."
“Before we could implement plans to grow this year, we needed to get into a new facility to give people more room to sit and space to park,” said Scott Tamayo, President, ERI. “The new building in Hayward is twice the size of the building we’re in now, plus it has a yard and additional warehouse space we can utilize.”
“We purchased our current facility through the SBA 504 program in 2012,” said Tamayo. “We refinanced the building last year and used the 504 program again to purchase the new building in Hayward. We plan to lease out our Pleasanton building to another company and occupy the new building.”
“The biggest benefit in deciding to go with the 504 loan as opposed to a conventional loan was the lower up front costs,” said Tamayo. “For a small business like us, being able to put down 10% as opposed to at least 20% for a conventional loan—that’s a big chunk of change. It impacts cash flow and our ability to grow and hire new people.”
“Another factor in our decision-making process was the support we received from Capital Access Group,” said Tamayo.
“We were so pleased to help Scott and the team at ERI with their second 504 loan,” said Claudia Cohen, Senior Vice President, Capital Access Group. “It’s always rewarding to help a family-owned business and to support ERI’s continued growth. The SBA 504 program is ideal for small businesses like ERI that want to grow while preserving cash for working capital.”
“Claudia from Capital Access Group helped us with our 504 loan in 2012, so she was my first call when we were exploring options to purchase another building,” said Tamayo. “The second go-around was a lot easier. I really like their common sense approach and the way they establish trust. I’ve had nothing but good experiences with Capital Access Group.”
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 4.84%, fully amortized and fixed for 20 years. For more information, please visit www.capitalaccess.com.