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The Evergreen Edge Newsletter
Featured Loan
D'Amore Law Group puts down roots to expand the reach of its help
| Business Names / Operating Companies: | D'Amore Law Group, P.C |
| Borrower/Eligible Passive Company: | Galewood Office, LLC |
| Industry: | Law Office |
| Project Location: | 4230 Galewood Street, Ste. 100, Lake Oswego, Oregon |
| Financing Purpose: | Acquire an existing office building |
| Financing Structure: | 50%/40%/10% |
| Permanent Lending Partner: | Wells Fargo |
| Economic Development Goals Met: | Community Development |
| Jobs Created and Retained: | 10 |
| Website: |
The SBA 504 Loan Program finances the acquisition of owner-occupied commercial real estate, but what if the business can't immediately move in? The program allows for this, as in the case of D'Amore Law Group, P.C.
D'Amore Law Group was formed by Tom D'Amore in 1994. He focuses his practice on serious and catastrophic personal injury and wrongful death cases including medical malpractice, nursing home abuse, insurance bad faith, serious motor vehicle accidents, and job site injuries. The practice handles cases in Oregon, Washington and Northern California and represents clients nationwide in class action lawsuits. "In our practice we help injured people and their families, from grandmothers to CEOs," says D'Amore.
It didn't take long for D'Amore Law Group to outgrow their downtown Portland office space. "The historic building had a lot of charm, but they couldn't accommodate our space needs," D'Amore said. So the firm found 3000 SF of space in a spacious new office building a few miles from downtown.
But after a few years, the firm was once again searching for a space that could accommodate their growth. A longtime Clackamas resident, D'Amore and his family are deeply rooted in their community. With an abundance of inventory and interest rates low, it made sense to Tom to consider a commercial purchase. With help from a commercial realtor, he bought an office building with a good location and space to accommodate his firm's growth.
Jon McLean, D'Amore's banker at Wells Fargo, recommended Evergreen and the 504 program as a partner in financing the acquisition. D'Amore was impresses with the low fixed rate, the low down payment, and the opportunity to continue working with Wells Fargo. The fact that the program fees were mostly paid for by the American Recovery and Reinvestment Act was "icing."
Because of the strength of the company, Evergreen Business Capital was able to process D'Amore's loan under our SBA Premier Certified Lender status (PCLP). This shortened the SBA approval time.
"The Evergreen staff was tremendous to work with," D'Amore said. "They were very personable and made the process efficient and satisfying. They made it easy."
The new D'Amore Law Group building has two tenants. One company occupies 45% of the space and will remain. Another company occupies the remaining 55% and has a lease through August. D'Amore will move in thereafter. The SBA allows a business one year after loan funding to move into the property.
Tom D'Amore recommends Evergreen Business Capital and the SBA 504 Loan Program to other small business owners. "Evergreen is patient and answers questions quickly. They will do the homework needed to get to know your business and get it approved."
Latest Loan Approvals and Funding
December approvals and January funding 2010
Posted on Jan. 15 2010 11:17 am
We share some of our recent loan production details to recognize our lending partners, show the diverse businesses the 504 program can assist and celebrate the jobs being created.
December Approvals
| Lender | Business | Location | Project | Jobs |
| Alaska USA FCU | Chiropractor | Anchorage, AK | $409,100 | 1 |
| Alaska USA FCU | Chiropractor | Wasilla, AK | $451,800 | 5 |
| Baker Boyer Bank | Endoscopy | Kennewick, WA | $4,497,888 | 3 |
| Bank of America | Landscaping exterior & interior | Everett, WA | $378,200 | 20 |
| Banner Bank | Veterinary Services | Yakima, WA | $933,480 | 2 |
| Central Valley Bank | Retail Golf Sales | Yakima, WA | 805,918 | 1 |
| Columbia Bank | Offices of Physicians | Olympia, WA | $451,000 | 2 |
| IronStone Bank | Insurance Agency & Dentistry | Bothell, WA | $1,203,650 | 2 |
| Key Bank | Law Offices | Seattle, WA | $965,500 | 4 |
| Key Bank | Apparel Manufacturing | Woodburn, OR | $4,250,000 | 50 |
| Lewis & Clark Bank | Car Wash | Hubbard, OR | $1,117,542 | 1 |
| Lewis & Clark Bank | Retail Liquor Store | Portland, OR | $693,005 | 2 |
| Lewis & Clark Bank | Graphic Design | McMinnville, OR | $292,764 | 2 |
| Northrim Bank | Bilingual Montessori Preschool | Anchorage, AK | $840,000 | 4 |
| Pacific West Bank | Attorney | West Linn, OR | $559,774 | 2 |
| Skagit State Bank | Gas Station C-store | Sedro Woolley, WA | $833,200 | 2 |
| Washington Trust Bank | Restoration Contractor | Wenatchee, WA | $1,654,712 | 15 |
| Zions First National Bank | Freight | Blaine, WA | $1,150,000 | 5 |
| Totals | 18 | $21,487,533 | 123 |
January Funding
| Lender | Business | Location | Project | Jobs |
| Alaska USA FCU | Restaurant | Anchorage, AK | $1,000,000 | 20 |
| Kitsap Bank | Dentistry | Kent, WA | $1,550,000 | 2 |
| Pacific West Bank | Trucking | Troutdale, OR | $935,000 | 3 |
| Umpqua Bank | Drive Thru Coffee | Medford, OR | $378,433 | 0 |
| Wells Fargo | Gas Station & C-store | Portland, OR | $985,000 | 0 |
| Wells Fargo | Attorney | Lake Oswego, OR | $2,120,275 | 10 |
| Totals | 6 | $6,968,708 | 35 |
The 504 Corner
Mills reports on the progress and plans for SBA
Posted on Jan. 21 2010 11:49 am
SBA Administrator, Karen Mills, discussed the SBA's achievements for 2009 and its goals for America's small businesses next year at a National Press Club luncheon last month. Mills reiterated the Administration's mission to assist small businesses in three key ways - access to capital, assistance with contracting opportunities and counseling.
Mills said she is heartened by the success of the American Recovery and Reinvestment Act (ARRA) in bringing both lenders and borrowers back into SBA's lending programs over the last nine months. She credited the temporary elimination of SBA 504 and 7(a) loan fees and the 90% guarantee on 7(a) loans as the provisions that provided the most incentive for banks to again lend and small businesses to again borrow.
Mills pointed out that the $375 million the SBA received in ARRA funding has resulted in $16 billion in small business lending. Based on the increase in lending activity following the stimulus provisions, the SBA is now requesting that the fee elimination be extended through 2010 and that loan limits be increased to $5 million for 504 loans and $5.5 million for 504 loans to manufacturing businesses.
Additional funding for SBA 504 recovery program
Posted on Jan. 21 2010 11:46 am
President Obama signed the U.S. Department of Defense (DOD) appropriations bill on Saturday Dec. 20, 2009. It added money to the Recovery Act fund that pays the .5% lender fee and the 1.5% borrower fee in the 504 program.
Previously, fee waiver funds had run out in late November 2009. Borrowers willing to wait for the possibility of new funds were placed in a queue. SBA cleared all of the "conditionally approved" 504 loans by Christmas Eve and the queue is gone for now.
The extension included in the DOD bill authorizes fee relief until this additional funding is exhausted. SBA will reactivate the queues as funds are close to being exhausted.
Q & A: The Finer Points of the 504
Can the 504 program refinance fixed asset debt of more than 50% of expansion costs?
A business is purchasing a building, say for $1,000,000, and they have fixed asset debt that meets all of the 504 program refinance eligibility requirements. Evergreen Business Capital can include 50% of expansion costs, or $500,000, of the debt in the new 50/40/10% structure. If the debt is over 50%, can we then add the remaining money to the lender's first mortgage as a refinance outside of the 504 project?
Brad Erickson, Evergreen's Credit Administrator says, "The excess of over 50% of the new project expansion costs can be added to the lender's loan only if it is debt already secured by the same property being expanded, the project property. It cannot apply to debt secured by other refinanced property or equipment, non-project property."
Although 504 refinance for expansion eligibility was announced in February 16, 2009 in conjunction with ARRA fee relief, this is a permanent change to the program and does not sunset.
The 504 industry has recommended consideration of a further addition to the 504 program to allow refinancing for projects that do not involve an expansion. This will require a legislative change. We are monitoring legislation to see if this 504 program change is approved.
Inside Evergreen
Another 2009 Partnership Award Presented
Posted on Jan. 21 2010 11:17 am
Evergreen Business Capital Senior Loan Officers Lynn Beadling and Lori Milton present a 2009 Partnership National Lending Officer Award to Jess Richardson of Wells Fargo.
In Other News
New online small business tax workshop
Posted on Jan. 21 2010 1:34 pm
The revised IRS Virtual Small Business Tax Workshop offers updated content with interactive features and a new reference section.
The new Virtual Small Business Tax Workshop is composed of nine interactive lessons designed to help new small business owners learn their tax rights and responsibilities. Lessons include what you need to know about federal taxes and your new business, how to set up and run your business so paying taxes isn't a hassle, how to file and pay your taxes using a computer, and what you need to know when you run your business out of your home. The workshop will also be available on CD in January 2010 - you can preorder a copy of Publication 1066C here.
Calvin Goings, New Region 10 Administrator Sworn In
Posted on Jan. 21 2010 11:23 am
The U.S. Small Business Administration announced the appointment of Calvin Goings, as the regional administrator in Region 10, to oversee the SBA's programs and services in Washington, Oregon, Idaho and Alaska.
