While some might believe that success is a matter of luck, restaurateur Tracy Vaught and her husband Hugo Ortega feel differently. Their formula for success: foresight, vision, conservative growth and hard work.
Tracy owned several restaurants before opening Hugo's, so she had developed a formula that worked well for the businesses she operated. Around 2000, Tracy and Hugo leased the 1920s-era, 5800-square-foot building at 1800 Westheimer. They chose to lease the space first, making renovations and taking some time to see if their venture with authentic Mexican cuisine took off before buying the property.
The restaurant opened in 2002 and its popularity soared almost immediately. Tracy had the foresight to make sure the lease included a "right of first refusal" clause, which came in handy three years later when the property's owner was approached with an offer from another buyer.
Planning and timing are everything. The clause allowed them the right to make a counteroffer to secure the property, but didn't give them much time to stow away cash or make any complex plans about financing. Luckily, their banker had heard of Community Business Finance and the SBA's 504 loan program.
Tracy worked closely with the Community Business Finance staff, and the loan process went smoothly and closed in just a couple of months. What was most beneficial to them was that the funding allows small businesses like hers to maintain the cash on hand it needs to weather unforeseen things that inevitably crop up or to grab new opportunities that arise.
Community Business Finance helped Tracy buy the property so she could avoid the financial costs of moving and the business impact of changing locations on her loyal customer base. The SBA 504 loan helped her gain the advantages of owning versus leasing her business property.
Does your business have a formula for success? Read more about how Community Business Finance helped Tracy increase her success with a 504 loan. Contact Community Business Finance to find out how an SBA 504 loan can help you purchase your business property and keep vital working capital on hand.