“We own several business, including restaurants and major franchises, but this was the first time that we opted to finance a venture,” says Kayur Popat, co-owner of B Social, a state-of-the-art, all-ages entertainment venue in Bethlehem, PA. “When we researched loan options and lenders, the SBA 504 loan from Pursuit was clearly the best choice.”
Here’s why the SBA 504 loan was the right financing option, even for business owners with decades of experience and success – and how Pursuit helped Kayur and his partners to complete a multi-million-dollar renovation to bring B Social to the Lehigh Valley community.
Inspired to foster connection and community
Kayur and his friend and business partner, Mike Patel, hatched the idea for B Social in 2020, during the pandemic, when they and nearly everyone around them felt the impact of social isolation.
“We knew that as soon as the timing was right, we’d want to open B Social,” Kayur says. When the opportunity to purchase their building arose, he and Mike had to act quickly to secure it through a cash deal. To see it through, Mike’s brothers partnered on the acquisition.
“The location started its life as a Regal Cinema,” Kayur says about the immense, 45,000-square-foot space. “Following that, another entrepreneur opened a multi-attraction venue here.” To bring their vision to life, Kayur and Mike decided to explore small business loans – the first time they would use financing in their decades-long business partnership.
A vision for 45,000-square-feet of fun and connection
“We come from the service world and have owned several restaurants, major franchises including Dunkin’ and Subway, and gas stations. But this opportunity was different,” Kayur explains. “In a lot of ways, it’s more like a casino in that there are so many moving parts.”
B Social offers something for people of all ages and interests, from 75 state-of-the-art arcade games, axe-throwing, and bowling, to more than 70 screens to watch sports and more – including 24’ and 34’ screens that project sports, music videos and DJs. There are also several restaurant and bar areas, including an indoor/outdoor beer garden featuring local craft beer and cocktails, and a dance floor.
Achieving their goals meant significant expense not only to outfit the space, but also to upgrade mechanical systems and decor to meet their vision.
Among many options, Pursuit and the SBA 504 stand out
Kayur and Mike researched just about every lender and loan option that could fund a multi-million-dollar project in the Lehigh Valley.
“We went to about 20 different potential lenders, including banks and small business lenders, and we got a lot of offers to apply for different loans but they didn’t have the terms we wanted,” Kayur says. “I also talked to the Small Business Development Center team at Lehigh University. They recommended that I reach out to Quaint Oak Bank – and the bank recommended the SBA 504 loan and Pursuit.”
SBA 504 loans provide long-term, fixed-rate financing up to $5.5 million for major fixed assets, including owner-occupied real estate and heavy equipment. The program can also be used to refinance debt incurred for these types of purchases. The loans are made in partnership between the borrower, a bank, and a certified SBA lender, like Pursuit.
They’re ideal for real estate projects and major equipment purchases because, unlike bank loans that require a 30-40% down payment, SBA 504 loans typically require only 10%, with the bank financing 50% and the SBA lender financing 40%. They also include a repayment term up to 25 years, which makes it easier to afford and budget.
Complex deals require an experienced team
Kayur called Pursuit SVP Ashley Heaton, who leads Pursuit’s lending services in Eastern Pennsylvania and Southern New Jersey.
“As soon as we contacted Ashley, we knew it was the right move,” Kayur says. “Our deal was large and complex with a lot of moving parts, so there were challenges throughout the process. Ashley and our Pursuit team were amazing. I honestly think it would’ve fallen apart without Ashley but instead, she guided us and corralled the information and documents that we needed to keep the deal together. It took time, but she got us to the finish line.”
“Partnering with the bank to help this startup secure financing was such a rewarding experience. The project is a true example of how vision, preparation, and the right loan program can bring a dream to life,” Ashley says. “This once-vacant building is now an entertainment hub in the Lehigh Valley area for all to enjoy and it’s a testament to the ways in which small businesses improve their communities and are a vital part of our economy.”
B Social opened in July 2024 and now serves hundreds of people every day, including about 8-10 parties daily. To provide an exceptional experience, B Social’s team includes several outstanding management-team members and anywhere from 45 to 120 additional staff.
A way to mentor future entrepreneurs
Kayur says that after successfully closing the B Social deal and seeing the results in their phenomenal entertainment complex, they’re inspired to bring the B Social concept to other locations.
“Mike and I have had a lot of businesses together, but this one is special to us,” he explains. “When we came to Lehigh Valley, we didn’t see a lot of people from our same background and now we have a space that embraces diversity, inclusion, and engagement in every sense. We want to mentor our community’s next generation of entrepreneurs and show them that family entertainment centers are an amazing option.”
He continues, saying, “For us, B Social is a labor of love. We come in on Saturday nights to help out and make sure that everyone’s having a great time, including employees as well as guests. Pursuit was essential to making this possible.”
Whether it’s your first business or your next big step, Pursuit can help
Kayur says, “We had always self-financed our businesses but this experience with Pursuit, Ashley, and the SBA 504 loan program has opened our eyes to a whole different world, because now we understand what the right financing can do. Knowing that there are great lenders and loan options, like Pursuit and the SBA 504 program, means that not only can we use this to expand our holdings, but we can guide others to the right financing and lender, too.”
Pursuit is a leading small business lender serving businesses across New York, New Jersey, Pennsylvania, Connecticut, Illinois, and Delaware. We offer loans and a line of credit for working capital, commercial real estate, equipment, and much more. We also help small businesses launch and grow with loans for a huge range of uses in most industries.
We’ve helped thousands of small business owners get the funding they need to achieve their goals and we can help you, too.