Seth | SBA 7(a) Commercial Real Estate Acquisition | Santa Fe, New Mexico
The Challenge
Seth’s story is one of organic, passion-driven growth — and the institutional roadblocks that often stand between a thriving small business and its next chapter. What began as a hobby in his Santa Fe garage — building cabinets for his own kitchen — quickly became something much larger. Friends, neighbors, and word-of-mouth referrals turned Seth’s craft into a genuine business. A year in, his CPA advised him to formalize as an LLC to manage the growing income.
As demand outgrew his garage, Seth leased workshop space from a local building owner, investing in the machinery needed to scale his production. When that building owner eventually offered to sell the property for $695,000, Seth recognized it as the opportunity to secure his business’s future.
He went to his banker. He was denied — his LLC had only been formally organized for a few months, even though he had been operating and generating income for years. He applied with other banks. They declined too. The institutional system couldn’t see past the age of his legal entity to the strength of the business behind it.
His local banker, unwilling to leave Seth without options, reached out to a banker in Denver. That banker also declined — but referred her to Flo Lattery at Aspen Commercial Lending.
Aspen’s Approach
Flo conducted a Discovery Call with Seth and quickly identified that an SBA 7(a) loan was the right vehicle. Unlike conventional bank lending, the SBA 7(a) program is specifically designed to support small businesses that may not fit traditional credit boxes — including businesses with limited formal operating history but demonstrable revenue and a strong underlying business case.
Seth assembled his full documentation package and sent it to Flo promptly. After a detailed review, Flo selected one of her highest-performing SBA lenders and submitted Seth’s package. The lender reviewed the materials and agreed to pursue the 7(a) loan.
Navigating the Deposit Requirement
The SBA 7(a) program required Seth to contribute 10% of the loan amount as a good faith deposit — approximately $69,500. Seth had the funds in his 401(k) account but was concerned about the tax consequences of a direct withdrawal.
Flo introduced Seth to a self-directed 401(k) provider who specialized in exactly this situation — enabling Seth to leverage his retirement savings as the equity contribution without triggering a taxable withdrawal event. The structure protected Seth’s financial position while satisfying the SBA’s deposit requirement.
The Outcome
Seth successfully acquired the commercial building where his cabinet-making business operates — turning a lease obligation into owned real estate
The SBA 7(a) loan closed despite multiple prior bank declines based on the short formal operating history of his LLC
Seth’s 401(k) was leveraged through a self-directed structure to fund the 10% deposit — avoiding tax consequences and preserving his financial position
A passionate craftsman who built a business from scratch in his garage is now a commercial property owner — with the stability and equity that ownership provides
Client Quote
“Seth expressed his gratitude to me for guiding him through the process and being patient with all his questions.”
— Flo Lattery, Founder, Aspen Commercial Lending
What This Story Demonstrates About Aspen
SBA Expertise — Flo immediately identified the SBA 7(a) as the right program for Seth’s situation — a program the banks never offered him.
Lender Network — Aspen’s relationship with a high-performing SBA lender was the key that banks and conventional brokers could not provide.
Creative Problem-Solving — The self-directed 401(k) introduction resolved the deposit challenge without exposing Seth to unnecessary tax liability.
Client Education — Seth had no experience with commercial real estate acquisition or SBA lending. Flo guided him through every step with patience and clarity.
Referral Network Value — Seth reached Aspen through a banker referral chain. The referral partner program creates exactly these kinds of connections — turning declined applications into successful closings.
Aspen Commercial Lending — Douglas County, Colorado
Connecting borrowers with the right capital — efficiently, transparently, and on terms that serve their success.
