The best commercial real estate financing out there today is the SBA 504 second mortgage loan program. It provides 90% financing of an entire capital project's cost- acquisition (or construction), renovation, and soft costs. Small businesses can buy and renovate buildings for their use by putting down just 10% of total cost. 50% of the financing comes from a bank or other lender. 40% (up to $4 million) comes from the SBA 504 program in second mortgage position.

Recently, Best Yet Market Inc., a regional supermarket chain, recognized just how good the 504 program is- by using it to finance its own corporate headquarters and centralized warehouse/distribution space. Owned by two brothers with extensive experience in the retail food industry, Best Yet Markets started with a small grocery store in Brooklyn. Subsequently, they opened their first full service supermarket and today operate seven full service supermarkets throughout Long Island, employing 450 workers!

With the expansion of the chain to seven stores, Best Yet management realized the need for a regional/centralized distribution center and warehouse for efficient operations. The company's new 30,000 foot building in Bethpage will be used for these purposes along with corporate headquarters space. Being able to support the growing operations from a centralized center will enable Best Yet to further expand and they plan to add another 150 jobs in the near future. Using the SBA 504 loan program is letting the company preserve its cash for working capital needs in the expansion. In addition, the SBA 504 loan is low interest (currently 6.7% all in) for 20 years (fixed rate). Not only does this make the project more affordable, it gives them stability of cash flow so they can plan and expand.

As successful entrepreneurs, the owners of Best Yet Market Inc. have recognized the desirability of using the best real estate financing program- the 504 program. You can access this favorable financing for your small business expansion by contacting the Long Island Development Corporation at 516 433 5000 or biz-loans@lidc.org for more information.