SBA loan helps float El Rinconcito Del Mar Restaurant.

Juan Ramirez arrived in Los Angeles, a small boy from a small Mexican town with big dreams and aspirations. The new arrival from Jalostotitlan, Jalisco was hungry for work and a place to start. This he found under the roof of the Hungry Tiger Restaurant, a chain of 52 eateries created by ex-military pilot entrepreneurs who founded the Flying Tigers cargo airline.

At the young age of 15, Juan Ramirez humbly started his career as a dishwasher. But he subscribed to the founding company motto of "Anything, Anytime, Anywhere" and adopted this sense of urgency as his work ethic within the hospitality industry. By adhering to his principles and by showing initiative and drive, Juan moved up the restaurant feeding-chain, while assuming more responsibility with every move. Within six short years, he was made head chef of the Westchester Hungry Tiger, a facility with a seating capacity of 350, a payroll of 60 employees, and annual revenues of more than $3.5 million.

Head chef at 21 was quite an accomplishment for Juan. He was the youngest person to ever hold this position in the Hungry Tiger chain. However, after 8 years in this esteemed responsibility, Juan Ramirez began to feel pressure to move away from the food end of the business and to get more involved in operations management. At the same time a life-long desire to have his own restaurant began to surface with greater frequency. This push-pull phenomenon, plus the fact that Juan truly liked cooking, led him to leave Hungry Tiger in search of his dream.

He sold his house and bought a burger stand in South Gate. This was quite a learning phase for Juan. The food presentation lacked the pizzazz he was accustomed to and the operations were definitely less exciting. In addition, he had to work 7 days a week to earn 40% of what he was previously paid as head chef. Juan, nevertheless, persevered in his burger operation for almost two years. When the opportunity to buy a 1,250 square foot family restaurant at 2940 East 1st Street became available, Juan jumped at it. He sold the burger stand and bought Rinconcito del Mar in 1986.

This little corner restaurant served Juan and his family well. It helped keep 9 members of the local community gainfully employed for many years and transformed Juan into a socially responsible East LA business man. However, it failed to fulfill Juan's dream. It lacked the aura and excitement that Juan associated with running a more sophisticated restaurant--a restaurant like the Hungry Tiger.

In 1996, Juan began to fashion a grand plan for what would be his "dream restaurant". He had already purchased the unimproved property next door when it came on the market, and made plans for ground-breaking. However, each iteration that Juan mentally played out led to one similar conclusion--financing of the new restaurant was a problem.

Juan knew that there was "street' money available. But this capital source would cost him approximately 16% and might carry additional burdens unacceptable to his entrepreneurial spirit and to his future plans. In 1997, desperately in need of technical assistance, Juan visited CHARO Community Development Corp and met with one of its Business Assistance Center consultants, who also happened to be a specialist in restaurant operations.

The consultant helped Juan develop a project plan that took into consideration financing options and effective restaurant operations, including appropriate menu pricing to insure adequate profit margins, and the ability to service the anticipated debt associated with the building and furnishing phases.

With the help of the consultant, Juan was able to focus with more clarity and thus visualize what the dream restaurant would look like in reality. This greatly aided in arriving at the final plans which projected a much more up-scaled restaurant in approximately 5,000 square feet of efficiently designed space. The preliminary construction estimates called for $600 to $650 thousand for construction with equipment and furnishing estimated at $200 thousand.

Now that Juan knew the magnitude of what was needed to fund his project, the attainment of the funds seemed even more remote- more doubtful. Just when it appeared that he might have to put his project on hold, the consultant, still intrigued by Juan's project, interceded on his behalf. The business plan was restated and a bakery was added to the project. The combined revenues from baked goods and restaurant operations were sufficient to "cash flow" the deal in the eyes of the consultant. Now all that was left was to convince a bank of the merits of the deal.

The consultant knew that an SBA Loan was the best option for Juan to select. Accordingly, the consultant prepared a 7(a) loan package and set out to find an SBA lender to underwrite Juan's dream. Because of the consultant's extensive knowledge of restaurant operations, he was able to convince Comerica Bank to take a look at the project. By working closely with the bank and explaining the merits of the deal, the consultant soon received a firm commitment by the bank.

As a result, El Rinconcito Del Mar opened for business, in October, 2002. The dream was attained, and in doing so, Juan created 20 new jobs in the community. Today the restaurant is successfully operating at a level of revenues double the former restaurant. The bakery is successfully establishing loyal clientele at an increasing rate. With the large square footage and more than ample parking, the facility has more than adequate capacity to insure the desired level of service to make all dining experiences memorable.