SBA 504 Eliminates Rent, Builds Equity

The Opportunity

A specialty HVAC contractor operating in Dallas sought to purchase its owner-occupied commercial facility to transition from leasing to ownership. This transition also converted its full deposit and treasury relationship from a local credit union simultaneously. The company demonstrated strong operational metrics and a differentiated position within its market segment. A comprehensive full-team and SBA 504 structure was assembled in partnership with a certified development company to optimize financing outcomes.

The Challenge 

• SBA 504 dual-lender coordination and documentation
• Full wallet migration. Transitioning deposits, treasury, and merchant services from incumbent provider
• Owner-occupied real estate appraisal and SBA occupancy compliance
• Six-month origination-to-close timeline with stakeholder engagement
• Multi-product pipeline coordination. Ancillary services in active development stages
   

Relationship Depth and Operational Excellence

This transaction exemplifies Texas Capital's full-team model in action. A well-qualified referral enabled the SBA Loan team to execute a 504 structure with a local CDC partner with operational precision. Beyond the core real estate transaction, the relationship captured meaningful wallet depth through migrated deposits, treasury services, plus a merchant services review, commercial card program, and 401K benefits assessment in progress.

The financing structure and integrated treasury solution delivered immediate operational impact. By consolidating banking services and transitioning to owner-occupied financing, the contractor eliminated rent exposure and established a predictable occupancy cost structure. The $3.1mm SBA 504 provided favorable long-term amortization, preserving monthly cash flow compared to escalating lease obligations. Integrated treasury services provided real-time visibility into operational cash flow, including liquidity monitoring, payment processing, and account analytics. This visibility enabled the contractor to redeploy capital strategically toward equipment, inventory, and team expansion.

Consolidating deposits and treasury services under one banking partner streamlined reconciliation, reporting, and day-to-day operations. A comprehensive banking relationship emerged from a single financing opportunity, with additional pipeline runway ahead.

The Outcome

A $3.1mm SBA 504 plus Owner-Occupied Real Estate financing closed, enabling the client to purchase its operating facility. The relationship expanded to include new deposit and full treasury services.

Ownership of the operating facility created a tangible asset on the balance sheet, strengthening the company's financial position for future growth and credit capacity. The identified pipeline for future commercial real estate and equipment financing provides a pre-established growth pathway. This represents a multi-product win demonstrating full-team coordination, account depth, and comprehensive business impact.