Mercantile Capital Corporation Provides SBA 504 Loan for Orlando-Based Production Company
Orlando, FL, September 04, 2014 --(PR.com
)-- Mercantile Capital Corporation, a leading provider of U.S. Small Business Administration (SBA) 504 loans, announced today that it recently provided commercial financing for Bungalow Scenic Studios to acquire and renovate a $4.15 million industrial facility in Orlando, FL.
Bungalow Scenic Studios offers high quality, state-of-the-art scenic solutions for corporate and industrial events nationwide. The company manages all phases — design, build, install, support, and strike — for each project and venue, including hotel ballrooms, convention centers, theaters, arenas, etc. Bungalow’s clients include the Orlando Magic, Walt Disney World, Norwegian Cruise Line, Universal Orlando, ESPN, Ford Motor Company, Hilton Hotels, and Microsoft.
Bungalow has an in-house design team as well as on-site carpenters, painters, and metal fabricators, making it possible to design and manufacture custom solutions for each client. Prior to this project, the company occupied four separate leased spaces for its office, shop, and storage needs. Larger projects were often broken down into smaller components which were built, stored, and tested individually.
The new 93,600 square-foot facility more than doubles Bungalow’s space and will increase efficiencies by housing all operations to one location. The additional space and high ceilings will allow Bungalow to assemble and test larger projects prior to final delivery.
Colin Murphy, President and co-owner of Bungalow Scenic Studios, said Mercantile was more than helpful during the loan process. “Consolidating our operations under one roof was important to us,” he said. “The fact that we could buy and renovate the building we needed with just 10 percent down was great news for us.”
Murphy added that Mercantile’s expertise in SBA 504 loans was important. “We specialize in creating beautiful events, and Mercantile specializes in 504 loans. We knew we were in good hands right from the start.”
About the SBA 504 Loan Program
The SBA 504 loan program allows small business owners to finance fixed assets (commercial real estate and equipment) with long-term, below-market, fixed interest rates. These loans are designed to finance the total project cost, including purchase price, construction/renovations, equipment, soft costs, and closing costs. A typical 504 loan project requires only 10 percent equity (down payment) from the small business 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). The program is self-funded and historically has been operated at a zero-subsidy status within the Small Business Administration.
Mercantile Capital Corporation is one of the nation’s leading providers of commercial real estate financing for small business owners via the SBA 504 loan program. As of June 30, 2014, Mercantile has closed 532 loans to fund projects worth more than $1.47 billion in 39 states, Puerto Rico, and the District of Columbia. A primary aim of the SBA 504 loan program is job creation and retention, and the company’s lending activities have helped create and/or retain a total of 9,907 permanent jobs since 2003. An industry leader for more than a decade, Mercantile has been on the forefront of efforts to grow the SBA 504 program by improving efficiencies, educating the marketplace, and leveraging technology. Its SmartChoice® Commercial Loan Calculator smartphone app provides instant and accurate monthly payment estimates, and has been downloaded by more than 6,900 users.
For more information, visit www.504Experts.com and www.504Blog.com. For media requests and questions, contact Trey Colson, Vice President of Marketing, at 407-786-5040 or tcolson@@mercantilecc.com.