July 7, 2020
Andre Gonzalez always had a plan to open multiple barbershops and, eventually, to own the business properties. He’s been working toward that goal since he started cutting hair at age 13. In 2016, Gonzalez and his friend Joel Carcamo opened The Vintage Clipper barbershop in New Holland, Pennsylvania. Eleven months later, they launched their second location in nearby Millersville.
When the Millersville property they were renting went up for sale, Gonzalez and Carcamo had their chance to become property owners. Having been in business for only a year, financing was a challenge. For help, they turned to the lenders at Pennsylvania-based Community First Fund, who leveraged FHLBank Pittsburgh's small-business financing product, Banking On Business, to assemble a funding package.
Community First Fund provides financial and technical assistance to underserved populations in 15 counties across eastern Pennsylvania. Angel Rosario, the organizations Senior Community Lender who managed the loan, notes, "When Andre and Joel came to us, they were doing well, but had only a 5 percent down payment – not enough equity to qualify for a loan. Banking On Business provided a second unsecured loan to close the gap between their down payment and the financing we could provide."
After closing on the Millersville property, Gonzalez and Carcamo remodeled, expanding the shop from four to eight customer chairs and creating two three-bedroom apartments in the building to generate rental income.
"These loans have helped us take our business to the next level,” says Gonzalez. “We’re paying $700 more per month than we were as renters, but we’re making an additional $2,500 per month in income.” Gonzalez has leveraged the additional income to open a third barbershop location in Lancaster – on a lease, but with a goal to purchase.
"Since 2015, we've provided 27 Banking On Business loans, totaling $1.2 million," says Jim Buerger, Community First Fund’s Executive Vice President and Chief Lending Officer. "It's a great program because it gives people like Andre and Joel an opportunity to grow their business, own real estate and build their own wealth. This is how we lift up communities – one loan and one business at a time."
When the Millersville property they were renting went up for sale, Gonzalez and Carcamo had their chance to become property owners. Having been in business for only a year, financing was a challenge. For help, they turned to the lenders at Pennsylvania-based Community First Fund, who leveraged FHLBank Pittsburgh's small-business financing product, Banking On Business, to assemble a funding package.
Community First Fund provides financial and technical assistance to underserved populations in 15 counties across eastern Pennsylvania. Angel Rosario, the organizations Senior Community Lender who managed the loan, notes, "When Andre and Joel came to us, they were doing well, but had only a 5 percent down payment – not enough equity to qualify for a loan. Banking On Business provided a second unsecured loan to close the gap between their down payment and the financing we could provide."
After closing on the Millersville property, Gonzalez and Carcamo remodeled, expanding the shop from four to eight customer chairs and creating two three-bedroom apartments in the building to generate rental income.
"These loans have helped us take our business to the next level,” says Gonzalez. “We’re paying $700 more per month than we were as renters, but we’re making an additional $2,500 per month in income.” Gonzalez has leveraged the additional income to open a third barbershop location in Lancaster – on a lease, but with a goal to purchase.
"Since 2015, we've provided 27 Banking On Business loans, totaling $1.2 million," says Jim Buerger, Community First Fund’s Executive Vice President and Chief Lending Officer. "It's a great program because it gives people like Andre and Joel an opportunity to grow their business, own real estate and build their own wealth. This is how we lift up communities – one loan and one business at a time."