Husband and wife team up to revive a historic inn back to its full potential
Discover how a couple became owners of the historic Barncastle Inn, despite the project not being a conventional fit for a bridge or SBA 504 loan.
The Financing Challenge
Owen Royce-Nagel and Elizabeth Szczepaniak, seasoned restaurateurs, were set to become owners of the historic Barncastle Inn in Blue Hill, ME. But, despite their collective experience, their business entity was brand new. The use of proceeds that their project required, along with the start-up nature of the business, did not make it a conventional fit for a bridge or SBA 504 loan.
SBA 7(a) Loan Scenario
Here's what our borrower brought to Ready Capital
Passion for hospitality
Over 20 years of experience in the restaurant industry and a passion for reviving a historic inn and restaurant to its full potential after Covid-19.
Financial statement challenges
A lack of historical cash flow or balance sheet operations
Repeat loan denials
Rejections from multiple local, regional, and national banks due to the industry and change of ownership.
After a bridge lender referred the deal to Ready
Capital, the team was able to get to work applying a
true SBA 7(a) “credit elsewhere” analysis and solution.
They structured the loan with a combination of low
money down from the borrowers, a seller note, and a
full standby agreement from a friend. Working capital structured into the loan ensured a healthy runway for success.
The Non-Bank SBA Preferred Lender Difference
A small business loan is not an empty box like a checking or savings account. No two small businesses are alike when it comes to their financing needs. This means that small business financing requires out-of-the-box thinking and capabilities many banks simply can’t offer.
Ready Capital is a non-bank, SBA preferred lending partner (PLP). We speak fluent small business and have the process in place to help them reach their goals the first time.