“Before securing our own property with an SBA 504 loan from Pursuit, we had to lease equipment because we didn’t have the space needed to store and service it,” says Sean Xu, Ph.D., owner of Tri-State Civil Construction LLC, in Mahwah, NJ. “Now, we own property that includes office and equipment storage and more, which has created efficiencies and security that just weren’t possible before.”
Here’s how Pursuit helped Tri-State Civil Construction (TSCC) purchase nearly four acres, including office buildings, a shop, and a yard, to meet today’s needs and enable further growth.
A specialized engineering and construction firm secures major contracts
TSCC specializes in deep-foundation solutions for major construction and infrastructure projects, including dewatering, groundwater treatment, and geotechnical services. Founded in 2017, Sean and his team have more than 50 years of combined experience in the industry. TSCC is a union contractor and is certified as a Minority-Owned Business Enterprise (MBE) and Disadvantaged Business Enterprise (DBE), which means that their work also helps government agencies and major corporations achieve minority-owned business goals.
Before launching his own business as a specialized subcontractor on major construction projects that require complex solutions, Sean gained experience as a project engineer and project manager working for some of the largest companies doing this kind of technical construction in and around the New York metro area.
“Foundation work is particularly complex, especially if there’s a groundwater component, which is our specialty,” Sean explains. “Our projects have included JFK Airport Terminal Redevelopment, LaGuardia Airport Development, the 2nd Avenue Subway project, the Van Wyck Expressway, and Hudson River Crossing Gateway Project in the New York metro area. And we get a lot of subcontracting work from previous clients, because they know the quality, technical proficiency, and efficiency that we bring to the table.”
An ongoing challenge leads TSCC to secure its own property
“We’re growing steadily but because we didn’t have our own property, we had some inherent challenges,” Sean explains. “For example, without room to store and service major equipment, we had to keep it at a separate leased property or, sometimes, we had to rent equipment, which means less control over maintenance and availability.” It also meant higher costs for a business that wanted to focus on growth.
When Sean found the ideal property in Mahwah, NJ, he approached his commercial bank, Columbia Bank, for financing. When the bank wasn’t able to finance the purchase with terms that would help Sean continue to reinvest and build his business, the bank was ready to partner with an SBA lender on the loan – and Columbia Bank recommended Pursuit.
Sean’s first experience with SBA programs came during the pandemic, when a PPP loan enabled Sean to keep his team on payroll and continue with essential projects, despite the shutdown.
“That was fantastic,” he says, “because it kept us moving forward with our team intact.” His team started with two employees and today, TSCC has about 40 full-time employees and dozens of union contractors, with a total ongoing payroll of about 70-80 people.
An SBA 504 loan from Pursuit helps TSCC acquire commercial property
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, with down payments of just 10% for most projects, compared to 30-40% for conventional bank loans. SBA 504 loans also include a repayment term of up to 25 years, making it easier to plan long-term while reinvesting in your business.
“As soon as I learned about the SBA 504 loan’s benefits, it was the obvious choice for the acquisition,” Sean says. “We got in touch with Pursuit and everything moved forward from that point on.”
Sean worked with Pursuit SVP Hector DaCosta, who led the SBA 504 loan process.
“The application and approval processes take a little more time and documentation than conventional loans, but it’s not more difficult, it’s just a matter of being responsive and getting the paperwork in,” Sean says. “Hector made sure that we kept moving forward and that Pursuit and the bank had everything needed. And it’s such a great loan program that the benefits far outweigh any extra steps.”
With SBA 504 financing, TSCC consolidated all operations on one site – a move that significantly improved efficiencies and capabilities. It also means that TSCC’s occupancy costs are stable, which is a tremendous advantage in a region in which commercial property leases are often unpredictable and prone to frequent and significant rent increases.
“Now, we can focus on growth, including adding new markets along the East Atlantic shore area and beyond,” Sean says. That includes a project in Baltimore, MD, as well as other areas that are prone to groundwater and other water-based challenges, like Houston, TX.
Hector adds, “It was a pleasure working with Sean. His business was operating from various sites which was neither efficient nor cost effective, and he needed a larger space to store his heavy equipment and large rigs. Sean was thoroughly engaged in the process realizing the benefit that the financing and, ultimately the move, would provide. I’m pleased to say that we are currently working on a second project that will enable him to expand into southern New Jersey.”
Pursuit has the financing that fuels small businesses
“Working with Pursuit was great and the SBA 504 loan program is fantastic for projects like this,” Sean says. “In fact, I just recommended both to my property broker for his other clients.”
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, Nevada, Illinois, and Washington. 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 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.