Featured Loan:
Cupcake Royale bakes up sweet success

Small, healthy, growing companies need help expanding, even in good times. Many can't afford the 20 percent down payment required by traditional loans. This was true for Jody Hall, owner of Cupcake Royale, who made the decision to grow into a fourth Seattle location in late 2008, before most realized a recession was ahead.

Cupcake Royale sells cupcakes in their own coffeehouses including seasonal limited-run specials. Their local presence and independent ownership has garnered them a solid, loyal following. They were voted Seattle's Best Cupcake in the 2008 Seattle Weekly Magazine and getting national attention as well. Their catering and wholesale business was increasing and it was time for more space.

Jody Hall found a first floor, street level commercial condominium in a new building under construction in the dense, affluent urban Capital Hill neighborhood of Seattle. In addition to a cafe, the space could serve as a production facility for the expansion of the wholesale cupcake business and have a large office space from which she could manage the business. Hall looked at traditional loans, "But I couldn't find the cash for 20 percent down."

Fortunately Michael Gaberman at Pacific Continental Bank introduced her to the SBA 504 loan program with its low down payment and low fixed rate. "The down payment was only 10 percent, plus the terms on the 504 deal were locked in for 20 years, which is really attractive with interest rates as low as they are," said Hall.

The project qualified for 504 financing as a logical extension of the company's current operations, expanding on an already successful business with strong management experience and strong historical cash flow.

Hall said, "We opened our new café and bakery in the space at 1111 E Pike Street. We created about 18 new jobs in the process and expanded our business by 28% with the revenues from the new café. As well, we've been able to expand our delivery program because we have added capacity."

Hall's experience with Evergreen Business Capital was positive too. Pat Rogers was Hall's Evergreen loan officer. "I LOVED my experience working with her. She was thorough, up-front, nice to work with and great at clarifying my questions. It was a stellar experience. Honestly! Thanks Pat!"

What would Hall tell another small business owner about the 504 loan? "I would recommend it for sure."