Commercial development - Pizza Ranch - begins on Washington's east side

Construction work has begun on the first commercial development project adjacent to the year-old Super Wal-Mart store on Washington's east side.

The first project is on approx. 2 acres in the Wiley Subdivision on the south side of Hwy 92 (Washington St.) and Wiley Ave., adjacent to Super Wal-Mart. Phase I of the project includes a 5,200 s.f. Pizza Ranch with a drive through. This is a larger location for the successful Pizza Ranch, currently located in leased space next to the regional Iowa DNR office in the old Hy-Vee store.

Phase II on the 2 acre site is planned to include 12,250 s.f. of retail/restaurant custom space.

Jeff Hazelett, of Dalhaze Development and broker at Washington Real Estate, handled the land acquisition and concept.

MMS Consultants of Iowa City did the site design. Delong Construction of Washington is doing the site preparation, including utility extensions and storm water detention area. The Pizza Ranch was financed by Midwest One bank, and a SBA 504 loan through Iowa Business Growth Company.

Greg Wiley has three additional prime commercial lots adjacent to the new Super Wal-Mart, which opened in the fall of 2009.

SBA 504 Loans - a great deal for business and banks

Now that there is an uptick in economic activity, its time to think about the SBA 504 loan program, a great tool for small business to get the capital that they need to grow, and it has a great interest rate and low or no fees. Businesses and entrepreneurs can access SBA 504 loans through their local lender who works with the Iowa Business Growth Company (IBG), an SBA certified development company.

According to the SBA and the IBG, the top ten uses nationally for SBA 504 loans are:

1. Hotels & Motels
2. Physicians
3. Full Service Restaurants
4. Dentists
5. Child Care Services
6. Fast Food Restaurants
7. Veterinarians
8. Lawyers
9. Grocery Stores
10. Gas stations & C-stores

In Washington County, IBG and local lenders have used SBA 504 loans for office building construction, purchase of an existing retail business, construction of a new manufacturing facility, and even a hog building.

Current IBG 504 Loan Rates are 10 year - 4.607% and 20 year - 5.523%. Very competitive.

The usual structure of a project using SBA 504 funding is:

• Applicant/Borrower - 10%
• Bank or Conventional Lender - 50%
• IBG SBA 504 - 40%

The benefits to business applicants are:

• Minimal cash down payment (usually 10%)
• Fixed interest rate
• Long term financing
• No balloon payment
• 504 Loan funds can be used for:
• Land or building acquisition
• Building construction or renovation
• Long-term or project-related equipment or furniture
• Soft costs associated with the project

An SBA 504 loan can even be used to refinance or repackage existing debt in some circumstances.

Ask your lender about financing your next business expansion or start-up with an SBA 504 loan. You can get more info on the IBG web site at www.iowabusinessgrowth.com.  As always, businesses can also contact Ed Raber at the Washington Economic Development Group (319-653-3942) to confidentially discuss your project.