How TMC Financing Empowered Geiger Post to Secure a Better Future with SBA 504 Loan

Geiger Post's Strategic Move: Securing Future Stability with TMC Financing

In the competitive world of television post-production, adapting to change is vital. Based in downtown Los Angeles, Geiger Post has navigated this landscape since its inception in 2013. Co-founder Hans Geiger recently shared how his company transitioned from renting to owning through the help of TMC Financing and the SBA 504 loan program, paving the way for a more secure future.

The Necessity of Change

As Hans Geiger explains, the company faced a pressing decision as their lease was nearing its conclusion, and the landlord had no intention of renewing. "Our lease was ending, and the landlord had other plans for the property, so it wasn't going to be renewed," Hans recalls. This situation urged the team to explore the potential of purchasing a property that would serve as a permanent home for their business.

This decision proved timely, particularly following the pandemic's push for remote collaboration. Geiger Post determined that a facility under 11,000 square feet could sufficiently meet its operational needs, especially as they'd been operating in a larger rented space previously. "The property we purchased is just under 11,000 square feet, which is about two-thirds of the size of the space we leased," Hans explains. The new studio is conveniently located within a mile of its previous location, ensuring minimal disruption to their current clients, including established names like Netflix and Paramount.

Seamless Financing with TMC

Considering their options, the Geiger Post team discovered the SBA 504 loan program. One significant advantage that propelled them toward this financial decision was the lower down-payment requirement—only 10%, compared to the 30-40% typically required for conventional loans. This, along with the below-market fixed interest rates and long-term repayment options, made the SBA 504 loan an attractive option.

Their bank, Comerica Bank, recommended TMC Financing to assist them with the intricacies involved in the SBA loan process. The collaboration with TMC began with Business Development Officer Jennifer Davis, whose expertise assured the Geiger Post team of a smooth financing journey.

"As soon as we talked to Jennifer about our property and the SBA 504 loan, we felt good about moving forward with TMC," Hans asserts. Yet, as the process unfolded, complications arose that required TMC's support and persistence. "Our TMC team stayed with us throughout the challenges and helped us get us to the finish line," he recounts, emphasizing TMC’s role in overcoming potential roadblocks.

Benefits of Property Ownership

Transitioning from renters to property owners has unlocked numerous advantages for Geiger Post. Hans highlights that their mortgage and property-tax expenses are actually lower than their previous leasing arrangements. Not only does this bolster their cash flow, but it also allows them to build equity in their property directly.

Moreover, owning the space facilitates freedom in making improvements tailored to their operational needs. "The investments we make in the space directly benefit us, and we have security for Geiger Post and our clients because we're not at the mercy of a landlord anymore," Hans points out.

The newly acquired studio enhances the company's capability to provide top-tier services, optimizing the environment for both on-site and remote projects, accommodating their workforce of 16 employees alongside flexible contractors.

Advice for Future Business Owners

Hans extends practical advice to other entrepreneurs contemplating a similar venture into commercial property ownership. "Be patient, make sure you save enough for the down payment, and find a good lender that you can rely on to guide you through the process. Jennifer and TMC were great," he recommends.

TMC Financing has a longstanding legacy of supporting businesses like Geiger Post throughout California, Arizona, Nevada, Hawaii, and Oregon. They’ve funded projects worth over $16 billion, improving the operational landscape for thousands of companies while generating significant job growth across various sectors. For businesses looking to secure financial stability through property ownership, TMC provides a trusted pathway to success.

For entrepreneurs outside TMC’s service area, the SBA’s Lender Match tool can assist in connecting with a certified development company (CDC) in their region. The transformation Geiger Post has experienced underscores the profound impact of proper guidance when navigating the complex landscape of business financing and real estate investment.