Want More Education?
Delve deeper into the science behind skin care with —Skin Inc. Video Education!
Most Popular in:
Only on SkinInc.com: Changes in SBA 504 Financing May Make Your Dream of Owning Your Spa a Reality
Posted: July 6, 2011
Barbara Morrison CEO and founder of TMC, a certified development company (CDC) based in San Francisco that has provided approximately $6 billion in financing for more than 3,700 businesses throughout California and Nevada, provides exclusive commentary to SkinInc.com about how changes to the SBA 504 financing program open new doors for spa owners.
Could now be a good time to buy real estate for your business? That is the top-of-mind question for many spa owners. To the small business owners who have weathered the economic downturn and are feeling more confident about their financial stability, the commercial real estate market can be both tempting and unnerving.
Skin care facility owners are seeing a surplus of retail space at rock-bottom prices, but keep hearing doom-and-gloom reports that the economy is not growing as fast as economists had predicted. With lots of chatter about a second recession, many spa owners feel stuck, wondering if now is the right time to transition from leasing to owning their workspace.
A Small Business Administration (SBA) 504 loan may be the solution for some owners looking to purchase their facility. While the reality of putting 25% down in cash for a typical conventional mortgage loan with a bank may be too much for a cash-conscious renter, the SBA offers an option with below-market, fixed-interest rates via the SBA 504 loan program.
The SBA has streamlined its policies in recent years to make commercial real estate loans more accessible and feasible for businesses. This year, further improvements to the program have been made. The revamped SBA 504 loan program is the best-kept secret in the small business industry, and offers opportunities for spa owners under recent enhancements.