River City Bicycles
$1,311,000 | SBA 7(a) Loan | Portland, OR
Founded in 1994, RCB provides bicycle repair services and sells bicycles, accessories, and apparel. They are located in a two-story, 10,600 SF retail shop in Portland, Oregon. In their current space they could display their merchandise and accommodate a second-floor, indoor bicycle track for customers to test ride their bikes.
They had expansion plans and needed a loan—which stemmed from a desire to sell leftover odd-lots of bikes, which their suppliers were forced to discount heavily. They wanted to turn a problematic situation for their suppliers into a winning outcome for RCB and their customers by opening a complementary bike outlet store.
Pacific Western Bank provided David Guettler, sole owner and president of the company, with 90% financing, allowing for a minimal cash outlay and the purchase of a 5,000 SF building two blocks away from his original store.
RCB’s new outlet store will occupy 51% of its new building. With their suppliers’ full support, they will now be able to offer their customers additional discounts as well as bike rentals—a growing demand in their Portland community.