Battery Systems uses energy efficiency to unlock unlimited SBA 504 financing.
Reno, Nev., February 20, 2015 (Newswire.com) - TMC Financing today announced the owner of Battery Systems, Inc. financed the construction of a 200,000-square-foot, energy-efficient distribution center in McCarran, Nevada, with a 20-year, fixed-rate SBA 504 loan. The new warehouse is located on a 12-acre site in the Tahoe Reno Industrial Center, which, at 165 square miles, is the largest industrial park of its kind in the U.S. and where the Tesla Gigafactory is under construction. The total project cost is $10.7 million.
“I found this area on accident,” Brad Streelman, owner and president of Battery Systems. “We have a smaller warehouse in the area, but this park is amazing. “Wal-Mart is here. Amazon is here. FedEx, PetSmart, Toys‘R’Us…you name it. For the Tesla plant, they’re extending the road to Highway 50 so we’ll have access to both Highway 50 and I-80, east and west.”
Ron Coomes, senior vice president/business development at TMC Financing, said the U.S. Small Business Administration’s energy-efficiency initiatives were a perfect fit for Battery Systems. “Brad had several SBA loans already, but by going green and installing solar we were able to unlock additional 504 funding,” Coomes said.
“Ron knew all the ins and outs and what was needed,” Streelman said. “He was instrumental in guiding us down the path and in this day and age, that’s what you need. There are too many hard-to-understand rules and regulations for a guy like me to do it all properly on my own. I had the land, so with a 504 loan I didn’t need to come up with a lot of additional funds. If it weren’t for TMC, I wouldn’t have been able to build this.”
Battery Systems, Inc. has 52 wholesale distribution centers serving local markets across the western U.S., Alaska and Hawaii. It supplies automotive, commercial, recreational and specialty batteries and accessories direct to customers. The distribution center is expected to create 50 jobs once construction is finished in March.
About SBA 504 real estate loans
The Small Business Administration 504 loan program allows small-business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the total project cost (TPC), which can include the purchase price, construction/renovations, equipment, soft costs and closing costs. A typical 504 loan project requires a down payment of only 10 percent of the TPC from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a certified development company (CDC). By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides businesses and communities long-term stability. Business owners can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website.
About TMC Financing
Founded in 1981, TMC Financing is the largest provider of SBA 504 real estate financing in Northern California and Nevada. TMC consistently ranks among the top CDCs nationwide, funding projects worth more than $8 billion across California and Nevada. More than 4,700 businesses have benefitted from this financing, resulting in the creation of an estimated 35,000 jobs. For more information on SBA 504 loans and the local businesses they support, visit tmcfinancing.com.