Current Market Leads to Alternative Options

SAN FRANCISCO—As GlobeSt.com previously reported, the owners of DRAKE Gastro Lounge recently acquired a building located in the South of Market area of San Francisco with a 20-year fixed-rate, SBA 504 loan for $4.3 million. According to TMC Financing, DRAKE was able to recoup more than $2,000 a month by purchasing their location, as well as fixing their operating expenses against future lease rate inflation. In an update to that story Barbara Morrison, president and CEO at TMC Financing, tells GlobeSt.com that San Francisco’s current leasing market leads to alternative options.

Barbara Morrison, president and CEO at TMC Financing, says that “While many conventional lenders shy away from financing restaurants, the SBA 504 program is able to provide low, fixed rate financing with as little as 10% down. This makes financing through the SBA a great strategy for restaurateurs looking to retain working capital.”