“I was approached by several lenders when I needed financing to purchase and improve the buildings that house Cottage Seven Academy,” says Bret Wade II, M. Ed., founder of a specialized school serving grades 1-12 in Phoenixville, PA. “But our work is all about fostering great relationships and I knew that I’d have that with the Pursuit team, as would my bank.”
Here’s how Pursuit helped Bret secure an SBA 504 loan to achieve his goals.
Early success in specialized education leads to a new opportunity
Bret, who has a master’s degree in education, spent several years working for leading companies that work with residential schools to identify and develop plans to turn around challenging situations, such as behavioral and emotional issues that lead to high suspension rates and disrupt learning for children and youth.
“After several successful turnarounds, I’d developed a model that could be replicated elsewhere. But I also wanted to work directly with children, teachers, and staff to have the most impact. It didn’t take long to realize that the best opportunity was to start my own school,” Bret explains.
He got his school-principal certification, found investors, hired teachers and staff, and started Cottage Seven Academy in 2017 with four students in a building leased from Pottstown School District. The school quickly grew, as did Pottstown’s own student body, so after just three years of leasing, the need arose for a new location for Cottage Seven Academy.
Then, when Bret had the opportunity to purchase a campus of two inoperative schools in nearby Phoenixville, it was an easy decision.
“I attended fifth grade in one of these buildings and this opportunity brought home how great the location would be for our school and goals, as well for the community,” Bret says.
Researching the right funding opportunity leads to Pursuit and the SBA 504 loan program
For Bret, the decision on which lender to use was easy. He had known Pursuit SVP and Market Manager Ashley Heaton for several years and his bank, Victory Bank, had also recommended Pursuit as the SBA-certified lender to partner on the SBA 504 loan.
“When I started researching loans, I was approached by multiple lenders,” he says. “But, I knew Ashley from years ago and I got in touch with her through my commercial-property broker. Fortunately, too, my bank already had a good relationship with Pursuit.”
Geoffrey Moody from KW Reality Group was the commercial-property broker who worked with Bret on the deal, which included property owned by the Phoenixville Area School District. He says, “Bret was an ideal client to work with on this sizable commercial real estate transaction. He was well prepared, well organized and willing to take guidance when needed to ensure that we were able to get to settlement in a timely manner, especially when dealing with an asset that was owned by a government-funded entity.”
Bret admits that because this was the first time he’d applied for a commercial loan to purchase property, he had some anxiety going into the application and approval process.
“It was such a big loan and the idea of applying for financing felt daunting, but it was a good experience,” he says. “Ashley and my Pursuit team kept everything on track. The experience that Pursuit brought to the table made navigating the process much smoother.”
He adds, “In the end, the work that Ashley and her team put in and the guidance and support they provided made it easy for the bank to approve it on their end, too.”
Ashley says, “It was an honor to help Bret secure financing for a project that makes such a profound difference in the local community. Their vision to create a safe, supportive learning environment for children is truly inspiring. Being involved in projects like this is what makes our work so rewarding!”
The SBA 504 program finances renovations, too
In addition to funding the acquisition of the two-school campus, Bret says that a significant budget for renovations was included.
“The main schoolhouse is from 1928 and the addition, from 1964, both had historic considerations,” he explains. “As a result, there were some additional hurdles for the renovations, but the end result was fantastic. We did a full roof replacement on the 1928 section and a resurfacing on the remainder, converted our lighting to LED, completed significant masonry restoration, paved, and mitigated environmental challenges.”
Geoffrey adds, “Bret was prepared to take on an SBA 504 loan, as he had put together thorough business projections and expansion plans that provided the SBA, Pursuit, and the bank with confidence that he could manage the numerous improvements needed on the property to make it suitable for children to be in a safe learning environment.”
A goal achieved ripples throughout the school and community
Today, Cottage Seven serves children and youth from 24 school districts in Southeastern Pennsylvania and Bret has a goal of eventually serving 90+ students from the area’s 30 districts. His team of 20 employees, including seven teachers, has a stellar reputation, too.
As Bret puts it, “Our team is awesome and that’s why our school is great! We have a culture that fosters success and we aim to be the primary placement school for kids with emotional and behavior needs.” As Cottage Seven’s growth continues, Bret would also like to use the buildings to further serve the community, including launching a vocational-tech program.
If he needed financing again, would he choose Pursuit? “Absolutely,” he says.
Bring your vision to fruition with Pursuit
In addition to helping students to succeed academically, socially, and personally, Bret’s also thrilled to have revived and restored buildings that are central to the community.
“This campus has always been core to the neighborhood, even though it stood empty for years,” he says. “People walk their dogs here, the local police hang out in the parking lot to have lunch, it’s just a much-loved part of the area. And now, it’s serving a great purpose again, too.”
“Pursuit provided Bret with the necessary tools and financing to move efficiently throughout the approval process,” Geoffrey adds, “and to take advantage of all the support that Pursuit offers to get this sale across the finish line.”
If you need financing for the acquisition of property, construction or renovation, or to refinance higher-cost loans for these uses, the SBA 504 loan can help – and Pursuit can, too.
Pursuit is a leading small business lender serving businesses across New York, New Jersey, Pennsylvania, Connecticut, and Illinois. 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 wide range of uses in just about any industry.
We’ve helped thousands of small business owners get the funding they need to achieve their goals, and we can help you, too.