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SBA 504 Loan Helps ‘Wild Birds' Soar to New Heights

Aug 2017

Wild bird feeding is an extremely popular and growing hobby in North America. Almost 50% of all U.S. households have bird feeders and/or bird houses in their yards. That equates to more than $5 billion a year in feed and feeders alone and another $25 billion in bird watching products, totaling more than $30 billion a year nationally in the backyard nature industry.

Mary Huggins and Susan Teisciero have owned a Wild Birds Unlimited franchise in Tallahassee since 2004 and have seen their business steadily grow every year. Wild Birds Unlimited is the original and largest franchise system of backyard bird feeding and nature specialty stores with more than 300 locations throughout the United States and Canada. The franchise specializes in bringing people and nature together with bird feeding and nature products, expert advice and educational events.

After eight years of renting space in a small strip center, Wild Birds Unlimited made the decision to expand and purchase a stand-alone location. They bought a piece of real estate for $175,000, which they held for three years. Originally, they planned to renovate the existing building on the property, but found out it would be more cost effective to demolish it and construct a new, more efficient structure to perfectly suit their needs.

In order to bring their vision to reality, Wild Birds Unlimited partnered with Florida First Capital to refinance part of their original debt (previous acquisition of the land) and provide financing for the construction of a new building.

With at total project cost of $776,000, the borrowers' down payment injection consisted of the value of the land, which helped keep their out-of-pock expenses to a minimum.

“In cases like this, the borrower is able to use the existing equity in their owned real estate as the down payment for their loan,” said James Hosman, Florida First Capital Vice President and Business Development Officer for the Northwest and Florida Panhandle. “The equity down payment is incredibly useful in helping companies preserve money for working capital.”

For more information about SBA 504 loans in Florida, South Alabama or South Georgia,contact a Florida First Capital Loan Officer or email us atinfo@ffcfc.com. Phone: 850.681.3601 or toll-free at 888.320.5504.