Danville Arby's helped by loan guarantee

By Tara Bozick
Published: January 22, 2010

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The property owner for the Riverside Drive Arby’s location will be able to help the tenant stay in business after receiving loan assistance through the federal stimulus package.

Mister Leo Holdings LLC, the property holding company, was finally able to get a loan to refi-nance debt because the U.S. Department of Agriculture Rural Development backed the loan through the department’s Business and Industry Guaranteed Loan Program, according to a de-partment news release.

The program is assisting 130 rural businesses with $452 million in loan guarantees across the country through funding available with the American Recovery and Reinvestment Act, the release stated. The Danville site and two other rural businesses in Virginia were helped with more than $2.6 million in guaranteed loans.

“It really could have been a lot worse,” said Gary Takvorian, manager of the property holding company. “Getting this refinancing was a miracle.”

The company — based in West Orange, N.J. — was able to receive a $1.4 million loan through Knoxville-based Community South Bank that was backed 80 percent by the guarantee program, said Vern Orrell, public information coordinator and assistant to the state director for USDA Rural Development.

The loan guarantee provides a level of confidence to the lender, minimizing risk, Orrell said.

The property management company’s ability to refinance its debt will help the Arby’s stay in business, which has been hurting because of the recession, Takvorian said.

An official agreement has not been reached with tenant Focus Ten — the Arby’s franchisee, but the hope is that the property owner can help the restaurant operator reduce costs, Takvorian said.

Focus Ten, based in Tampa, Fla., could not be reached for comment.

For more information on Recovery Act efforts, visit www.recovery.gov.