Garvey Auto Parts
Rev Up Your Business Engine...for Expansion
El Monte Auto Parts Retailer Expands Growing Business to Service
Area: South El Monte, California distressed
census tract #: 4335.004
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.
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.
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
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
Closing date: December 2004