With a unified vision, four friends came together to fill a void in the childcare market in their hometown. They combined their individual expertise and developed a business plan for a childcare center capable of serving 85 children.
Due to the lack of existing real estate appropriate for the project, the owners had to build from the ground up. The bank began underwriting the loan as a Small Business Administration (“SBA”) 504 loan, and TMF provided the borrowers with a $500,000 construction loan secured by a third lien.
TMF was able to assist the borrowers in achieving their business goals, assist the bank in reducing their construction risk, as well as provide funds to a project that positively impacted the community by providing affordable child care to a growing community. Ten full-time jobs were created.
Community Facility Project
Renovating a 69 year old movie theater that sat vacant and unoccupied for years may not be on everyone’s to-do list, but it was for one entrepreneur. Bank financing was obtained to purchase the facility and adjacent property for $400,000.
As the construction progressed, the budget grew. The bank loan had reached its maximum loan-to-value ratio, and the borrower was forced to locate an alternative source of financing. He contacted TMF and was provided $100,000 in financing for improvements and finish-out.
The innovation, dedication, and commitment of one entrepreneur developed into a local attraction that receives national recognition. His vision of providing the community with an exciting center for artistic expression has come to fruition.
TMF has built its approach to community facilities lending based on a model that provides businesspeople with loans that make good economic sense, while providing the community with resources that make good social sense.