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Garvey Auto Parts

Rev Up Your Business Engine...for Expansion
El Monte Auto Parts Retailer Expands Growing Business to Service Community Transaction Location

Area: South El Monte, California distressed census tract #: 4335.004

Borrower Profile
Garvey Auto Parts (GAP) is an auto retailer for domestic and foreign model cars and trucks in the city of South El Monte. In addition it provides machine shop services such as rebuilding engines and full auto body work. Owned by two brothers, this family business serves a predominantly Latino community and has seen gross sales increase 10% in the last year.

Area Profile
Garvey Auto Parts is located on Carry Blvd. a major commercial corridor in south El Monte. This is an area with a 96.87% minority population. It is also located on a particularly distressed census tract with over a 27% poverty rate.

Borrower's Need
Looking to refinance an existing SBA loan ($226,000) in order to expand, when GAP went to the bank, the bank declined due to their current FICO score.

The LDC Solution
With the LDC, Garvey Auto Part's was able to receive 90% financing under its 504 ACE lending program. Loan proceeds will be used to refinance existing SBA loan ($260,000) and provide funds to build two garages for expansion of services. Now GAP can look forward to continued success in the community it serves.

Community Development Impact
This loan will allow Garvey's Auto Part's owners to expand their businesses into the community; additionally they will expand operations to create two new jobs over the next two years. LDC is providing financial assistance to minority and women owned small businesses that are supplying a much needed service to the community.

Terms of Loan
Loan Amount: $320,000
Term: 20 years with 15 year maturity
Collateral Type: First and Second deed on commercial property located in South El Monte.
Value of Collateral: $427,000
LTV: 75%
Closing date: December 2004