“We started construction for The Annex in January 2020, just before the pandemic hit,” explains Michelle Armstrong, owner of the 23-acre event venue in Chaffee, NY. “Due to the challenges that came with that, our construction company wouldn’t move forward until we had cash in-hand, even with a signed commitment from the bank. We couldn’t have completed this without Pursuit and the SBA 504 loan program.”
Here’s how Michelle found Pursuit and the SBA 504 program and how, five years later, The Annex has become the area’s premiere luxury event venue for weddings and more.
Business inspiration from personal experience
Michelle’s decision to venture into venue ownership came from those closest to her. When her two sons got married in 2015 and 2016, the family had trouble finding a location that felt just right and fit their large guest count. That experience inspired Michelle to create an event venue within the picture-perfect setting of a former restaurant in Chaffee, called Earl’s, that she and her husband had purchased in 2012.
Michelle explains, “I had more than a decade of restaurant-management experience and my daughters-in-law, Stephanie and Samantha, were ready for professional changes. That got us all thinking about the site’s potential and we decided to go all-in and create our vision.”
With years of restaurant and event experience, as well as business management gained as part of the team that, along with her husband, owns a successful local business – Pioneer Motorsport – Michelle had the experience needed. And, she says, Sam and Steph are “full of energy and zest and charisma and creativity” and they bring that to every event at The Annex.
Facing challenges beyond anything imagined before
“I financed much of the early work through a combination of savings and a mortgage commitment from our bank,” Michelle says. Little did anyone know that just as construction was kicking off, the COVID-19 pandemic was brewing.
The pandemic brought skyrocketing costs, construction delays, stalled financing, and more. Even for an experienced small business owner, like Michelle, these challenges proved daunting. Among them, her construction company couldn’t move forward without prepayment.
“Given all the supply-cost increases and labor shortages, our bank appraisal came in $1.5 million below construction costs,” she explains. “They suggested that I find another lender who could provide an SBA 504 loan and recommended Pursuit.”
Soon, Michelle was in touch with Pursuit SVP Mike Taylor.
Pursuit and the SBA 504 program come through
The SBA 504 loan program provides long-term, fixed-rate financing of up to $5.5 million for major fixed assets, including owner-occupied real estate and heavy equipment. Loans can also be used to refinance debt incurred for these types of purchases.
As Mike explains, “When the deal was originally proposed to Pursuit, the banker advised that the appraisal had come in lower than they anticipated. They needed to find a way to maximize the loan beyond the amount that conventional bank loans could provide. Michelle and I discussed her options and knew the SBA 504 would be the best fit. We were able to increase the loan-to-value constraints, which enabled total financing of nearly $1,850,000 – a significant increase from the $1,500,000 bank cap.”
“I met with Mike and he was awesome,” Michelle says. “He and the Pursuit team were so helpful throughout. Mike understood our goals and challenges and even though the pandemic caused additional steps, we got the financing. Now, we have a venue that matches our vision. The SBA 504 loan program was exactly what we needed at that time.”
In January 2021, a year after construction started, The Annex hosted its first wedding and the team has been steadily building the business since.
Today, Michelle manages financials and other logistics, while Steph and Sam work with clients and wedding planners, as well as community members, to create breathtaking and deeply personalized events. Their team also includes 5-7 additional staff who pitch in on everything from bartending and cleaning to managing lights and sound. Michelle’s husband is the groundskeeper and to keep their costs reasonable, The Annex team works with an approved list of caterers from a range of popular restaurants in their Western New York region.
“Michelle was terrific to work with and had a thorough understanding of her business, which resulted in a smooth application process,” Mike says. “Not only were we able to make her and her family’s dream come true, but the dreams of so many others in the years to come!”
In 2025, The Annex hosted about 15 major events, including weddings with 350 guests (and the capacity for 400). They also host numerous events for their community, including holiday parties, proms, charity events, and more. Looking ahead, they aim to double or even triple the number of event bookings and to host more community-based events, too. The Annex team also has a longer-term goal of leveraging their beautiful property by adding overnight accommodations.
Pursuit can help your business dreams come true
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’ve helped thousands of small businesses and we can help you, too.
Contact us today to learn more.