How One Affordable Housing Builder Tripled Its Facility Size With Strategic Commercial Capital

The demand for affordable housing is higher than ever before. In this hectic time, one innovative construction company found a way to grow faster by thinking outside the box.  

The company designs cost-effective housing modules in a manufacturing facility in North Carolina. It then ships and assembles those modules onsite, which reduces construction waste and lead time.

When demand for the company’s products outpaced its facility’s capacity, it needed a new space three times the size to keep up. The company’s leaders connected with Barrington Commercial Capital to structure a tailored financing solution. Our team tapped into commercial real estate funding through an SBA 504 loan.  

The Finance Structure

With guidance from Barrington Commercial Capital, the builder secured a $4 million construction loan under the SBA 504 program. Here’s how the structure breaks down:

• A certified development corporation contributed 40% of the loan

• The SBA provided 50%

• The borrower put down 10%

Thanks to this structure, the company was able to access a long-term, fixed-rate financing option and access sums beyond the usual SBA cap for conventional lending.  

Why It Matters

Using this model, the company achieved several notable benefits, including:

• A stable, fixed-rate financing option rather than a variable-rate loan, which provides budgetary certainty amid rising rates

• Access to higher dollar limits beyond the $5M cap typical of other SBA products

• Alignment with economic development goals like job creation and retention

• A financing partner experienced in creative capital solutions

The loan is another example of how Barrington Commercial Capital supports deals that others won’t.

Lessons for Your Business

Is your company looking to grow into a new facility or purchase new equipment? If so, here are some important takeaways:

• Set a clear objective before you start looking for funding

• Take advantage of special programs

• Partner with an expert in commercial capital

• Plan for long-term and fixed stability  

The bottom line is that creative equipment and facility-funding solutions can move your business forward.

Ready to Explore Your Options?  

Barrington Commercial Capital can help you evaluate the right mix of financing options for your company’s goals. Our creative team can explore everything from equipment lines of credit to business property finance and specialty programs such as the SBA 504 loan. We’re committed to getting you the capital you need when you need it.  

Contact the team at Barrington Capital to explore commercial funding options for your business.