$100K Small Business Boost Loan Filled Financing Gap for McKinney Restaurant
A Small Business Boost (SBB) loan from Lamar National Bank (Lamar Bank) and the Federal Home Loan Bank of Dallas (FHLB Dallas) helped fund the opening of the first Capriotti’s sandwich shop in McKinney, Texas.
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SBB is offered by FHLB Dallas through member financial institutions such as Lamar Bank to provide financing for qualified small business transactions by filling the gap between the loan amount that an FHLB Dallas member institution can fund and the loan request made by an eligible small business. SBB loans are unsecured and subordinate to the primary loan made by the member financial institution.
In this case, 3 Strand Restaurants Inc. received $350,000 in funding with $100,000 of that in the form of an SBB loan to open the Capriotti’s Sandwich Shop. Stan Carver II, CEO of 3 Strand Restaurants, said he and three business partners also made investments to launch Capriotti’s in McKinney. Interior renovations are underway, and the shop is scheduled to open in mid-August along West University Drive in McKinney.
This is Lamar Bank’s first SBB loan in North Texas, an area of rapidly rising real estate prices where Jason White, vice president and commercial lender/business development officer at Lamar Bank, said the lending product could assist additional existing or newly forming businesses.
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“Small businesses are a major focus for us, and SBB has some great advantages over other small business lending products with its straightforward application process, no payments for the recipient in year one to allow businesses to develop cash flow and a streamlined reporting process for the FHLB Dallas member,” Mr. White said.
Mr. Carver said he ate his first Capriotti’s sandwich in 2019 in Las Vegas, Nevada, and loved it. The idea of opening a Capriotti’s in North Texas soon took hold. Mr. Carver’s real estate agent, who was helping him scout locations for the restaurant, introduced him to Mr. White at Lamar Bank.
“When Mr. White presented the SBB, I found it to be a straightforward process and a good fit,” Mr. Carver said.
Greg Hettrick, first vice president and director of Community Investment for FHLB Dallas, said access to capital can be challenging for small businesses, especially those just forming.
“Small businesses are the backbone of our communities, and Lamar Bank identified a business that will create jobs, boost the local economy and bring a new dining option to McKinney residents,” Mr. Hettrick said. “This is how we like to see the SBB in action.”
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