Anthony Page opened his first Sleepworks Mattress & Furniture in 2006 in Massapequa Park. The store was successful, and Page was able to pay down $1.2 million of a $1.75 million bank loan in less than five years. Then, his lender converted the $500,000 outstanding on that loan and a separate $250,000 loan that Page had accessed in 2011 to renovate the store, into a loan that carried a high interest rate and extra fees until a balloon payment was satisfied.
“I knew I had to refinance,” said Page, who does business as Easy Bed Mattress Co. Inc. He reached out to Wells Fargo, and the private lender brought Pursuit into the fold. The two partnered in a $1.043 million refinancing deal that allowed Page to pay off the $750,000 in high-interest debt and provide the company with $293,000 for equipment and property upgrades. The lower interest rate through the 504 refinance program improved the company’s cash flow, giving Page the ability to expand.
“We’re in growth mode, and this definitely helps with that growth,” said Page, sole owner of Sleepworks. He opened a second, smaller Sleepworks outlet in Bay Shore earlier this year, and will use a $3.5 million conventional SBA 504 loan to build his third and largest Sleepworks store, this one in Patchogue.
Page has also expanded his range of product offerings, which allows him to compete with Sleepy’s and other large mattress retailers. All three Sleepworks stores are on Long Island.
Sleepworks qualified for the refinancing through the Small Business Jobs Act’s 504 Refinance Loan program. The program, administered through the SBA, allowed small businesses to lock in long-term, stable financing, with a goal of protecting jobs and hiring additional workers. The newest Sleepworks Mattress & Furniture store will create 20 new jobs. Sleepworks’ two retail outlets currently employ four people.
“It’s a great program,” Page said. “The guys I worked with were outstanding. They knew their stuff. I don’t think there was a time when I asked a question that they didn’t know the answer. That’s very unusual in today’s world.”
The store in Patchogue will be built in two phases. The first phase will be 23,000 square feet; the second phase will be 41,000 square feet. Page plans to market it as “the world’s largest mattress store.” It is expected to open in early 2015.