Orlando, FL, June 25, 2015 --(PR.com
)-- Mercantile Capital Corporation, a leading provider of U.S. Small Business Administration (SBA) 504 loans nationwide, announced that it closed its first joint loan with parent company IBERIABANK since the companies merged in March. The $7.65 million project allows Planet Bardot, LLC to acquire and renovate an existing 5,100 square foot multi-tenant retail center in the Knox Park area of Dallas.
Planet Bardot is a high-end fashion boutique founded in 2013 by successful designer and entrepreneur, Diana Tabeshi. The rapid success of the retailer presented an opportunity to grow out of the 725 square feet it originally occupied. An additional 3,900 square feet will be constructed, giving the property a total of 9,000 square feet and allowing Planet Bardot to expand its footprint to approximately 5,000 square feet. The remaining space will be leased to third-party tenants upon completion of construction, which is expected to take approximately nine months.
Tabeshi tried to secure SBA 504 financing from three other banks before getting in touch with Mercantile. “We believe that without Mercantile’s expertise, we would have failed to obtain the best-suited financing for our project,” Tabeshi said. “Our 504 loan gives us room to grow and generate rental income with less money out-of-pocket than a conventional loan,” she added. “The terms that Mercantile gave us guaranteed this project’s success and surpassed all our expectations.”
Tony Zara, Executive Vice President of Mercantile, said the project was a success because of teamwork. “This was our first chance to work closely with IBERIABANK on an SBA 504 loan, and it went really well,” Zara said. “We were able to make this project a reality for Planet Bardot and I expect we’ll have many successful closings in the future with IBERIABANK in Texas as well as throughout the Southeast.”
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 operates at a zero-subsidy status within the Small Business Administration.
About Mercantile Capital Corporation
Mercantile is a wholly-owned subsidiary of IBERIABANK (IBKC) and has been a primary source of SBA 504 loans and interim loans nationwide since 2003. As of 5/31/15, Mercantile has closed 563 loans to fund projects worth more than $1.58 billion in 40 states, Puerto Rico, and the District of Columbia. A primary aim of the SBA 504 loan program is job creation and retention, and Mercantile’s lending activities have helped create and/or retain a total of 8,954 permanent jobs since 2003. Learn more at www.504experts.com.