San Rafael Grocer utilizes SBA 504 Program to Realize his Dream Full-Service Grocery Store

Andy’s Market opens New Specialty Store and Community Gathering Location 

Andy Bachich, owner of Andy’s Local Markets, was born and raised around San Rafael, CA and always dreamed of opening a full-service grocery store in his hometown.  Today, he is the proud owner and operator of a local favorite grocery store with three locations.  Thanks to TMC Financing and the 504 Loan Program, Andy was able to build his dream grocery store, adorned with seafaring style, with only 10 percent down. 

How Andy Bachich Defied the Odds and opened his Market on the Marina 

Andy’s first opportunity to open a store came in 2008, when the former Loch Lomand Market was in a state of serious decline. Experts indicated that there was no economic justification for a specialty grocery store at this location; however, Andy, determined to succeed, convinced the City Council that this location was perfect for HIS market.  

Andy signed a lease at the Loch Lomand building and launched the original “Andy’s Market.”  Andy described the original location as a ‘fixer-upper’ and was ultimately a stepping stone to owning a specialty grocery market on the water.  Even though six previous owners were unable to maintain business operations at this location, Andy successfully operated here for 10 years. 

During this time, Andy’s Market became a local favorite with a faithful following, all the while Andy never wavered on plans for his own nautical market on the water.  

Andy’s SBA 504 Loan  

In 2017, Andy took advantage of the purchase option in his lease and took ownership of the 15,000 square foot building. Andy utilized the SBA 504 Program, allowing him to finance the property, equipment, and all improvements with only a 10 percent down payment. Since signing the original lease, the business invested about $3.5MM to improve the store. The 504 loan was able to reimburse the company for those incurred expenses.  

“By purchasing the building we originally leased, we have more control,” explains Andy. “Because we’re our own landlord, we know that down the road we have options. If we decide to go another direction, we can rent it out. In twenty or thirty years, it will still be a marketable building! But for now, we are so happy to own this unique space and to be able to serve our community with local products and great customer service. “

On July 15th, 2018, after a decade of perseverance, Andy and his wife Troy launched the grand opening of the new Andy’s Local Market.  The store is filled with marine decor, including custom wood boats to showcase produce, boat propellers as ceiling fans, and channel markers refashioned as lamps.  The market includes a coffee, beer and wine bar and has outdoor tables overlooking the marina for dining.  “I wanted people to come in and be able to see their neighbors,” Bachich said. “I knew I had to make it a very special store,” explained Andy. 

Andy’s commitment to promoting small business leadership was acknowledged through his receipt of the North Bay Small Business of the Year Award in 2017 and the City of San Rafael’s Citizen of the Year award in 2018. 

About SBA 504 Real Estate Loans 

The Small Business Administration 504 loan program allows small-business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the total project cost, which can include the purchase price, construction/renovations, equipment, soft costs and closing costs. By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides businesses and communities long-term stability. Business owners can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website. 

About TMC Financing 

TMC Financing is the No. 1 CDC in Northern California and has ranked in the top five CDCs nationwide for two decades. During the past 35 years, TMC has provided over $9 billion in financing for more than 5,000 businesses throughout California and Nevada. For more information on SBA 504 loans and the local businesses they support, visit tmcfinancing.com.