Rebuilding Your Business with the 504 Loan Program -- It is Possible!

Sometimes when you buy a business, you know it's going to be a "fixer-upper." That was definitely the case when Travis Schneider bought the RV park on Sixth Street in Eureka, and the 504 loan program helped him refinance to make it a sustainable change. Now called Schneider Shoreline RV Park (or simply Shoreline RV Park), the facility is ready to comfortably accommodate visitors to the North Coast.  

With a $1 million construction loan, he began to create the site that tourists would be happy to retreat back to after a day of romping through the redwoods, hitting the beach and strolling through Old Town Eureka. Through Arcata Economic Development Corporation, Schneider said he was able to refinance. 

AEDC worked with Schneider and his bank through the loan application process, and he said he enjoyed having their competent staff getting him through the process. 

AEDC has worked with several businesses in the community, and it is not just restricted to those in the Arcata area. For more than 30 years, the AEDC has loaned over $47 million to local businesses and have helped entrepreneurs grow with the community. 

SBA 504 Loan Applications and information are available online, and in the AEDC Small Business Lending Center.

"The rate for commercial property is phenomenal," Schneider said. "It was a no-brainer in terms of affordability." 

he SBA 504 loan program is able to provide a 10-20 year term loan for a fixed rate that is currently lower-than-market. These loans are intended to help businesses purchase, improve or construct commercial or industrial real estate, such as Schneider did with the Shoreline RV Park.

AEDC works with each client's bank to ensure loan applications are submitted, and the bank-funded portion of the loan typically has competitive rates and terms due to minimal bank exposure on such projects. 

But when he bought the site in 2007, "it wasn't in operable condition by any means," Schneider said. The location right off of U.S. Highway 101 was ideal, but there was a great deal of work to be done. The entire property has since been renovated, including improved water and sewer lines, new landscaping, regrading and new fencing. The buildings with showers and other amenities were also redone to better serve guests, and new cable and internet services and equipment were added.