De Portola Estate Winery
Forgive the colloquialism, but Rick and Ted Neugebauer are crushing it. Literally. After seven years of assisting other wineries in the Temecula Valley wine country with developing and marketing their own brands and creating unique small business venues, the Neugebauer’s are joining the ranks of startup wineries in the Southern California region. With shovels in hand, the Neugebauer’s broke ground on the De Portola Estate Winery on August 2, 2019.
Joining the business owners at the ground breaking ceremony were several local political officials including Riverside County Supervisor Chuck Washington, Senator Jeff Stone's office, and Assembly member Marie Waldron's office, as well as Jeff Sceranka, President of Enterprise Funding Corp., who financed the $7.9 million project with a commercial mortgage through the SBA 504 loan program. Also present was Stonebriar Commercial Finance who partnered with Enterprise Funding in providing the financing for 50 percent of the project.
The small business loan will finance the development of an existing 11.4 acres of vineyard, adding an additional 3.5 acres of vineyard, as well as building a 10,000 square foot wine production facility and a 15,000 square foot wine tasting building. The financing for the tasting building includes provisions for a tasting room, restaurant, bar, wine club lounge, covered patio, and administrative offices. The expansive view of the De Portola Valley and the Mt. Palomar Mountains will enchant visitors and provide a spectacular backdrop for corporate events and weddings.
The Neugebauers anticipate opening the facility in June of 2020. The existing vineyard has been providing a robust harvest for over 20 years. The Viognier, Cabernet Sauvignon, Sangiovese, and Mourvedre vines yield between 40 and 50 tons a year, or approximately 3,000 cases of wine. The additional development of the property is projected to provide a substantial increase in the harvest, and by year five, the Neugebauers anticipate producing 10,000 cases of wine annually.
This project is a great example of how the SBA 504 program can be used for startup businesses when small business owners are moving to create a new business in an industry similar to the one they are already operating in. Rick Neugebauer had been a consultant for over seven years providing help to local wineries in their own strategic development, but recently came to believe that a distinctive Spanish/Mediterranean wine brand would be a desired and needed addition to the growing winery business in the Temecula region. With the expertise and knowledge in hand, he utilized the fixed-rate, long-term financing of the SBA 504 program to move into a new, but very familiar, business space.
Enterprise Funding exists to enhance economic development in local communities by providing financing for small business owners to expand and grow. If your business is ready to make a horizontal move into a new, but similar industry, expand to a new location, acquire a new franchise, or simply go from leasing to owning your own commercial real estate, we’d love to talk with you about securing long-term, fixed-rate financing to assist in the strategic growth of your small business. Call us today at (909) 792-3803 or visit us online www.efc504.com