Jose Theoktisto, who owns Oh Corn! Arepas with his wife, Belkis Castro, says, “After we secured a loan to purchase our building, we still needed funds for improvements and equipment, as well as to run day-to-day operations.” Here’s how they secured financing through two loans for working capital and to refinance high-cost debt, setting them on a path for success.
Booming success from a simple start
“After we emigrated to the U.S. with our families, we loved cooking Venezuelan dishes for our friends. With their encouragement, we opened Oh Corn! in 2016 in Clinton Park, aiming to bring our traditional food to a wider audience. We operated out of that space for six years,” Jose explains.
“While we operated the Clifton Park restaurant, we also started selling arepas at a farmers’ market in Troy, so we gained an audience there, too,” Jose explains. “We loved the Troy area, so when we were ready to relocate the restaurant, we knew this was where we wanted to be.”
Rather than lease, they looked for a building to purchase to give them more control over occupancy costs while building equity. It also meant more stability, as they wouldn’t be at risk of losing a lease.
“We found the perfect location on the riverfront, so we pulled together a down payment and secured the building with an SBA 504 loan through another lender,” Jose says. “Then we had to do extensive renovations before we could open. But, because we’d just secured a loan, the lenders that we’d spoken with before Pursuit weren’t able to approve additional financing.”
A farmers’ market connection leads to Pursuit
Because the renovations were necessary to get the new location open, Jose and Belkis did what many small business owners do: They put expenses on credit cards to keep the process moving forward. Along with the new loan for the building, their credit-card debt made it difficult to secure new financing – and the high interest rates on the cards made it hard to get ahead on the principal and interest payments.
“It was difficult but at that time, we didn’t think that we had any other options. Fortunately for us, the management team at the Troy farmer’s market is really proactive in helping the vendors find resources, including financing,” Jose says. “We learned about Pursuit through them.”
Pursuit helps with two loans for working capital and debt refinance
“Our Pursuit team was excellent! They really went above and beyond to help us,” Jose says about the help they received. It included a New York Forward loan to refinance debt they incurred for renovations and equipment and a SmartLoan for working capital. The New York Forward program includes financing up to $150,000 with a fixed interest rate to make payments predictable and affordable. Pursuit’s SmartLoan offers financing from $10,000 to $100,000 with a competitive interest rate and quick financing.
“We applied for a loan to refinance the work on the restaurant and, of course, we were thrilled to be approved. That alone would have been great for us,” Jose explains. “But then our loan officer, Keri Pratico, told us that as long as we were applying for that loan, we should also apply for a SmartLoan for working capital. It was wonderful because it provided much-needed funds with an interest rate that’s about 18% less than what we were carrying on our credit cards.”
“Keri and our Pursuit team were always very helpful and took the time to get to know us and what we needed. And with Pursuit’s help, we got the funds to move forward, along with great rates and terms,” Jose says. “This made everything easier, so we could truly focus on running the restaurant and making the food we love.”
The new restaurant increases the capacity from a primarily takeout operation in the previous location to about 70 people indoors, with the ability to book the space for private parties, and room for another 25-30 guests on the patio during the warmer season. In addition to Jose and Belkis, they also have about six employees, including family members who grew up on and love Venezuelan cuisine as much as Jose and Belkis do.
Pursuit has financing to help small businesses thrive
“It’s so important to find every resource available to small businesses and to talk to people who support you and your community,” Jose says. “The financing we received from Pursuit has helped us balance our cash flow and now, we can bring our beautiful riverfront restaurant to its full potential. We’re planning more events, like live music on the patio, and we’re starting to wholesale arepas to other restaurants and catering companies, which is an additional revenue stream we’d like to grow.”
Whether you’re launching or growing the business of your dreams or seeking the right opportunity to acquire one, Pursuit has the financing you need. With loan options from $10,000 to $5.5 million, Pursuit can help you get the financing for working capital, the purchase or construction of commercial real estate, to refinance business debt and more for businesses in New York, New Jersey, Pennsylvania, Connecticut, Nevada, Illinois, and Washington. Ready to find the funding that best fits your needs? Reach out to us today!
