It takes more than mere product knowledge to make deals work. It takes experience, expertise, competency and professionalism. It takes someone like Corey Gaskill a lending professional with decades in the banking industry.

Corey is a well-rounded, veteran commercial lender with both big bank and community bank experience. He has amassed a sizable knowledge base across a broad range of banking products and services. His experience in business development, underwriting and portfolio management, strong technical skills, organizational skills, and customer service all add up to a valuable resource for borrowers and bankers alike.

Corey has built a successful business career making projects into reality, from structuring the deal to getting the paperwork through the system and gaining approval; he’s been a “go to” guy for deals of all shapes and sizes. He’s also an engaged community leader who has seen both sides of the borrower-lender table. He knows business, he knows banking and he knows how to make the lending process easier and hassle-free as a result.

On a personal level, Corey is a committed supporter of many Austin non-profits. He also enjoys a wide array of outdoor activities and can proudly boast both Texas A&M and the University of Texas as alma maters.

“I can be a reliable partner with you and your client as you look for realistic solutions to long-term debt financing. Let me show you how we can make it less complex
and get it done faster and hassle-free.” – Corey Gaskill

Located on the square in downtown San Marcos, Texas, between Austin and San Antonio, the theater was built in 1941 and opened as the Plaza Theater. The building was remodeled in 1958 as a movie theater with two screens and renamed Holiday Theater. Now devoted to music and musicians, Texas Music Theater features all-new state-of-the-art digital sound, lighting and acoustics — with a mission to provide the highest-quality experiences for music makers as well as the thousands of audience members who will hear them.

Texas bands of all kinds, local and regional artists, and national touring acts will provide quality shows on any given night of the week and always on Thursday, Friday and Saturday.

TxCDC played a big part in making this deal sing. In duet with Pioneer Bank’s Brian May, TxCDC’s Senior VP Oscar Martinez put together a financing package that allowed owners Allen Shy, Gray and Scott Gregson to acquire the land, building and personal property in the building, which were all eligible for 504 financing. Not only will the new owners enjoy great long-term savings with this arrangement, the refinancing provides a substantial benefit in that the original note was a balloon note with a maturity date due in less than four years. Now they have 20 year permanent financing.

Texas Music Museum plans on making music and entertaining a lot longer than that!

Lender Profile:

Brian May, Vice President
Pioneer Bank of Texas
(512) 894-0262 brian@pioneerbanktexas.com

TxCDC Staff:
Oscar Martinez, Senior Vice President

TxCDC - Austin
(512) 433-1797 omartinez@txcdc.com

Read more on the Houston Business Journal >

Texas Community Development Capital (TxCDC) is pleased to announce it has allocated $5 million of New Market Tax Credits to LifeWorks Austin for their new $10 million dollar, 31,000 square-foot building which will help LifeWorks expand its mental health, education and literacy services. The new East Austin Youth and Family Resource Center, located at 835 N. Pleasant Valley Road, will provide more space for programs such as English as a Second Language classes, counseling and services for youth aging out of foster care.

LifeWorks provides the most comprehensive network of support services for at-risk youth and families in Austin, offering a safety net of support to more than 10,000 families every year. Their services provided to youth and their families include shelter, counseling, life skills training, GED classes and transitional housing. “This new facility, strategically located next to ACC’s Eastridge Campus, will allow LifeWorks to serve 25 percent more clients”, LifeWorks Executive Director, Susan McDowell, said.

Texas Community Development Capital was awarded $75 million New Market Tax Credits for Texas by the US Treasury CDFI fund in 2009. “We are proud to be a part of a grand solution for the young people of central Texas” said Paul Tovar, Chairman of TXCDC.

“At TxCDC, we’re all about creating jobs. We know that one of the greatest challenges small businesses face is access to capital. That’s why we make it easy for eligible small business owners to apply for loans to use for fixed assets, such as building acquisition, construction or expansion, land purchases and site improvements, or major machinery or equipment to grow their business. Providing small businesses with capital leads to job creation, business growth and increased tax revenues for the community. We are happy to be a part of this growth.”

– Suzanna Caballero, President TxCDC

Disclosure in Texas Construction Contracts

General contractors, subcontractors, as well as property owners are often unaware of the state and federal laws that apply to construction contracts. The majority of these laws are designed to protect property owners and to ensure that contractors act in good faith.

Sometimes however, even a contractor that fully intends to treat a property owner fairly can get into trouble if they don’t use professionally drafted contracts that follow both federal and state-specific laws. Doing them “on your own,” or downloading boilerplate contracts from the web might not be the best course to take.

Before a construction contract is signed, Texas law requires a contractor to provide a two page construction contract disclaimer. Doing so is not difficult, however, it is a procedure that is easy to overlook.

Texas construction contracts also require several other construction contract disclosures. For example, a contractor must include a statement regarding the right to repair.

Because construction contracts are subject to both state and federal law, it’s important for general contractors and subcontractors to make sure they aren’t taking unnecessary risks with poorly drafted contracts. The best advice is to seek the assistance of qualified legal counsel to make sure you get it right from the beginning.

• SBA 504 loans provide banks a 50% LTV and the opportunity to say yes to your client’s loan requests.

• SBA 504 loans provide up to 40% of the Total Project Costs at fixed interest rates (currently 4.69% for a 20 year term).

• SBA 504 Loans normally require only a 10% injection, which allows the business to retain essential working capital for funding future business needs.

• SBA 504 loans allow your bank to advance only 50% of the Project Costs to help establish liquidity, and they provide excellent flexibility in managing your bank’s balance sheet.

• TxCDC helps take the mystery and complexity out of refinancing your 504 eligible business assets. You can get many of your questions answered quickly by contacting a TxCDC staff member at 800-486-8620 or see our Resources page at www.txcdc.com/resources.

• Information from the SBA released recently provides important additional guidance and clarification regarding issues that make refinancing easier and more attractive. Contact your TxCDC representative for details or visit www.txcdc.com/news.

• The current interest rate of 4.69% on 504 loans is tied to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues. A typical 1 million dollar loan would currently have a total monthly payment of $6,250 with a 20 year payout.

• To be eligible for a CDC/504 loan, your business must have a tangible net worth of less than $15 million and have an average net income of less than $5 million after taxes for the preceding two years.

The Medfords started Two Hills Studio, Inc. in 1987 in an effort to create decorative light fixtures for architects and designers that could be easily customized to a project. They offered great style, expansive options and high quality, durable products – all handcrafted in their Austin studio by talented craftspeople.

Over the years, their product line has expanded to offer other complimentary metal work such as fireplace screens, cabinet door panels, vent hoods, mirror frames and elements of architectural decoration. The work as well as the dedication to their customers and their employees speaks for itself.

Recently, the Medfords found themselves at a crossroads: They needed to consider the future of their Two Hills Studio business relative to preparing for the future while securing the value of their assets. After renting their facility for 15 years, the family trust that owned their building decided that it was time to sell. They had first right of refusal, but they didn’t have much time. Their Wells Fargo banker suggested TxCDC and the 504-financing program. TxCDC made it happen.

“Our business has changed along with the evolving market and housing trends. We managed our financial needs well for a long time, but we were conservative. We rarely borrowed. When we faced the prospect of either moving our operation or buying the building, TxCDC and our bank put together financing that worked for us. The down payment was low and we were able to close pretty quickly. In the long run, it was a good investment to buy the building.”
– Britt Medford, Two Hills Studio Owner

LENDER PROFILE:

Chris James
Wells Fargo Bank, N.A.

Lending officer for Two Hills Studio

Ms. Rehberg takes helping others to the extreme

One of the pervasive themes in TxCDC’s mission and work is that of helping others. This infectious attitude was exemplified recently when TxCDC’s own Loan Processing/Marketing Specialist, Blyth Rehberg, rappelled down the 32 story American Bank Tower building in downtown Austin to raise money for the Make-A-Wish-Foundation® of Central and South Texas. Her efforts helped to raise $1,500. That is giant commitment, top-to-bottom! Way to go Blyth!!