Success Story - ARCO Menifee
Enterprise Funding Corp. is dedicated to the economic development of California communities through the Small Business Administration’s 504 loan program. This often-overlooked loan is an exceptional option for small business owners who need financing for long-term assets such as land, commercial real estate, or equipment. For the past 30 years we have had the privilege of working closely with many small business owners like Andy Sehremelis who recently opened an Arco AM/PM franchise in Menifee.
We first met Sehremelis in 2011 while financing one of the 19 small businesses that he has founded during the course of his career. Since then, Enterprise Funding has helped to finance three of his business ventures, and is currently working on a fourth loan for the entrepreneur. Sehremelis has over 30 years of experience in the retail service industry, and is the President of Parkcrest Construction and Development. He is also the founder of Archibald’s Restaurants in Southern California. Since it’s beginning in 2000, in the Inland Empire city of Ontario, he has opened a total of 5 Archibald’s across the region.
The Arco AM/PM franchise in Menifee was a ground-up construction project. The SBA 504 loan was used to purchase the land, and to finance the construction of the gas station, convenience store, and a car wash facility. The loan also facilitated the purchase of the equipment used in the car wash.
Sehremelis contributed 20 percent of the $5.4 million loan. Enterprise Funding contributed $1.6 million, or 30 percent, and Preferred Bank in Los Angeles financed the remaining 50 percent of the loan. The 504 loan was funded at an effective interest rate of 4.725%.
Entrepreneurs like Sehremelis are great candidates for the 504 loan program. While not your typical “Mom & Pop Shop,” founders and developers such as Sehremelis are adding great value to the communities they develop as they add jobs and create economic growth. The new Arco AM/PM in Menifee is projected to add ten jobs to the region in the next two years.
Some of the qualifications for a business owner to receive financing through the SBA 504 loan program include: not having a tangible net worth over $15 million, and having an average net income after taxes of less than $5 million per year. One of the SBA’s primary goals in providing funding for small business owners is to create jobs, so there is no limit to the number of employees a business can have.
Interested in purchasing your own building after renting for years? Ready to develop that corner lot you’ve been driving by for months? We’d love to help you get the low-rate financing you need. Start the pre-qualification process today by clicking here, or give us a call at (909) 792-3803.