Experience Pays in 504 Financing

When Kevin and Karen Green came to the table to discuss financing the purchase of land, a building and equipment from an existing meat market and grocery store in the Florida Panhandle, they brought with them years of related experience – something that paid off well for these entrepreneurs.

Kevin is a graduate of Florida State University with a bachelor’s degree in finance and 22 years experience in the grocery business. Karen, his wife, has 25 years experience as a buyer for several food and beverage companies.

“The Green’s experience allowed them to keep their cash equity injection in the project at the minimum of 10% of all costs, including professional fees and interim interest,” said James Hosman, FFCFC vice president and loan officer.

Located in Pensacola, The Butcher Shoppe opened for business in 2003. The Green’s bought the business in April 2007. Plans include expanding the store’s product lines to include fresh produce, seafood, deli, bakery, beer and wines. They’re also upgrading the quality and quantity of meat selections. Its target market encompasses about 92,000 residences.

“If the Green’s did not have related business experience, they would have been required to invest 5% more in cash. This, in turn, would have reduced their ability to market the business, hire staff and expand product lines,” said Hosman. “FFCFC’s 504 Program saved the Green’s a significant amount of cash, providing them with sufficient working capital to make the project work.