In San Francisco Bay, there are few places to relax and connect with nature. Diablo Creek Equestrian Center owner Abelino Espinoza and wife Esmeralda had a vision to change that. Passionate about horses from a young age, Abelino wanted to share his love of the animals he grew up with.
The couple saw great success opening their original location, Apple Creek Equestrian Center, in 2018. However, they didn’t know enough about their financing options. Looking back, Esmeralda says that if they knew about the SBA 504 loan program, that’s where they would have started.
“The fixed interest rate of the SBA 504 loan is very attractive, even now when the market is stabilizing,” she tells us. “We currently have a variable interest rate on our other property. We’d love to refinance that property with a fixed 504 loan in the future.”
As a business consultant, Esmeralda wanted an attractive financing package for the Diablo Creek branch. One of her clients connected her with a real estate broker who introduced TMC Financing team member, Anna O’Brien.
O’Brien knew the Espinozas’ were an ideal fit for the SBA 504 Program and began the prequalification process. The SBA 504 loan is a commercial real estate loan that provides below-market fixed interest rates with down payments as low as 10 percent.
SBA 504 loans enable small business owners to purchase, construct, or refinance owner-occupied commercial real estate. Improvements and equipment with a service life of 10 years can also be financed with the SBA 504 Program. Most small-to-medium-sized businesses can qualify for an SBA 504 loan, and many can receive 90 percent financing. Startups and ‘single-use properties’ such as this equestrian facility, can receive 85 percent financing.
With the SBA 504 loan program, the Espinozas purchased a new 5-acre horse ranch including a custom two-level, 4,762-square-foot home for $3.4 million. The 504 Program allowed them to acquire the property with only a 15 percent down payment.
The original Apple Creek Equestrian Center is much beloved, but the business required more space. With new customers every day, the Espinozas needed options for their guests to enjoy time with the horses in summer and winter, especially with temperatures soaring.
Owning this new property is changing, not only the business but the community.
“It’s helped us so much with the service that we’re giving our clients,” says Esmeralda. “The demand is high – we get calls for new business every single day. Thanks to this facility, we are able to accommodate more people, so kids and adults actually connect with nature.”
“Besides just growing the business, the impact we’re making on the client’s life is priceless. We have a lot of people who come in because they suffer from anxiety or depression. When they come to us, they can escape the stress of life.”
Things are looking up for Diablo Creek Equestrian Center, and there may be more expansion in the near future. Esmeralda is enthusiastic about both the SBA 504 loan program and the help she got from TMC Financing.
“We wouldn’t have been able to purchase this property if it wasn’t for the 15 percent down payment,” she says. “I have been in the financial industry for a long time, and I’m very impressed by the work ethic and the professionalism I saw from TMC Financing. The TMC team went above and beyond to help, and unfortunately, you don’t see that often.”
Her advice to Latino business owners is clear:
“We tell all our clients about TMC Financing. In the Latino community, there are many business owners in need of affordable financing, they just don’t know about the SBA 504 loan.”