Success story · Restaurant
SÜP Bought Its Midtown Reno Home
SÜP, a scratch-kitchen restaurant in Midtown Reno, used a $540,000 SBA 504 loan from Nevada State Development Corporation, coordinated with Bank of America, to buy its building at 669 South Virginia Street.
| City | Midtown Reno |
|---|---|
| Industry | Restaurant, scratch kitchen |
| What the loan financed | The restaurant's building on South Virginia Street |
| Loan | $540,000 SBA 504, coordinated with Bank of America |
The situation
A restaurant lives or dies by its address, and Midtown Reno's South Virginia Street corridor is one of the most sought-after in northern Nevada. SÜP had built a following there for soups, salads and sandwiches made from scratch. Renting on a street like that means the landlord holds the future of the business, and every lease renewal is a negotiation over whether the restaurant gets to stay where its customers are.
The deal
NSDC delivered the SBA 504 portion, $540,000, coordinated with Bank of America as the first-mortgage lender. The structure was the standard one: the bank's first mortgage, NSDC's fixed-rate SBA loan behind it, and the owners' equity. The rate on the SBA portion was set at the monthly debenture sale and is fixed for the life of the loan.
“The fact that Nevada State Development Corporation helped us — they are in turn giving back to the community by creating small businesses, strengthening and helping us grow.”
Kasey Christensen, owner, SÜP
The outcome
SÜP owns the building it works in. The payment on the SBA portion won't change for the term of the loan, which for a restaurant on a rising street is the whole point: the rent can't go up, and nobody can ask them to leave.
Watch the story
NSDC’s Success Story film, on NSDC’s YouTube channel.
