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Business Journals
22-07-2025
- Business
- Business Journals
Buying in: What Orlando small businesses need to know about purchasing commercial property
Several years ago, a contractor in Orlando found itself facing a serious problem: Its service vehicles, stocked with expensive equipment, were the constant targets of break-ins. The contractor had leased an office with an unsecured parking lot in a part of town with higher-than-average crime rates, and the company was struggling as a result. When the lease expired, the contractor moved multiple times before finally deciding to purchase its own office building — specifically one with gated parking. This decision solved a lingering problem and created new opportunities, allowing the company to invest in building a showroom to showcase its work and win over potential customers. 'Purchasing a building adds value to the business by allowing it to build equity through appreciation and have control over how the space is used,' said Giselle Gonzalez, assistant vice president, commercial loan officer, at Orlando-headquartered FAIRWINDS Credit Union, which helped the company finance the transaction. 'The company has a beautiful new space that's more secure and will be its permanent home for years to come.' Gonzalez said more business owners may consider purchasing property for the first time given that Orlando's business base is among the fastest growing in the country. She and Jonathan Russell, senior vice president, lending, recently spoke with the Orlando Business Journal about what business owners should consider before making a purchase. expand How to know when the time is right to purchase Business owners often decide to purchase a commercial property when they feel that owning aligns with their long-term objectives, Russell said. Key questions to consider include: What are your long-term plans for the business? How will property ownership affect your flexibility and ability to scale? How will this piece of real estate help add value to your business? Once owners have good answers to those questions, along with the confidence they can cover mortgage payments and maintenance costs, they may feel ready to proceed toward a deal, Russell said. Reasons it may be time to purchase a commercial property include: Your business is financially stable, with consistent cash flow and strong reserves. Lease terms have become unfavorable or unpredictable. You are confident in the market and location over the next five to 10 years. You need more control over your space and operations. The company has outgrown its current space, and you want to control how your new, larger space is designed or are looking downsize. Market conditions, including property valuations and the interest rate environment, are favorable. 'It's often the combination of internal and external factors coming together that makes it a good time to buy,' Gonzalez said. 'Small businesses that take advantage of those conditions, just like the contractor, can create spaces that reflect and empower their brands.' What type of financing makes sense? The U.S. Small Business Administration (SBA) 504 loan is designed for small businesses to purchase owner-occupied commercial real estate. This financing involves a conventional bank loan from an organization like FAIRWINDS along with an SBA-backed loan that guarantees a portion of the financing. 'Maintaining liquidity should remain a priority for small businesses,' Russell said, 'so before the purchase, they must consider the cash outlay. What will they have to spend to bring the property up to their standards? How much will it cost for new flooring, equipment and other improvements? The 504 structure allows a business to keep more of its cash for working capital by allowing a portion of these expenses to be included in the financing. Financial institutions find these loans attractive because of the lower risk that comes with being at a lower loan-to-value ratio.' If your business has strong liquidity, Russell recommends making a larger down payment and opting for a shorter amortization period. This approach reduces overall interest expense and allows you to pay off the loan more quickly. In such cases, a traditional commercial loan may be the most suitable option. How to prepare to purchase a commercial property Small business owners considering a commercial property purchase should pull together a team that includes a tax advisor, certified public accountant, attorney, real estate agent, insurance agent and banker, Russell said. FAIRWINDS can make introductions to these professionals if relationships haven't been established. 'Nothing is more local than real estate, and we want our small business owners working with people who understand the Central Florida market and its competitive landscape,' Russell said. 'We also want local partners who will take the time to learn your business so they can help you weigh all the risks appropriately.' Having this knowledgeable team in place long before the purchase will benefit the business owner, Gonzalez said, as commercial real estate transactions involve many moving parts and can take months to complete. Once an owner is ready to make an offer, he or she won't benefit from hastily pulling together a team of advisers. 'If you don't have a relationship with a banker today, start one,' Russell said. 'Having a banking professional as part of your network gives you someone to reach out to for unbiased advice. This puts you in a position to understand what's needed to get approved and move faster when you're ready to make that transformational move for your business — purchasing your first property.' At FAIRWINDS, we embrace a 'better together' approach, offering you a personalized, full range of small business and commercial banking services to help you reach your financial goals. We're your dedicated partner, supporting you every step of the way. Learn more.
Business Journals
30-06-2025
- Business
- Business Journals
Table of Experts: Empowering small businesses
The Orlando area's small business landscape has experienced significant growth in recent years, positioning the city as a leading environment for entrepreneurial success. Between 2017 and 2022, the number of businesses with paid employees in the Orlando region increased by 17.5%, reaching more than 76,000. Notably, small businesses with fewer than five employees saw a 22.5% growth, contributing approximately 75% of the 11,000 new businesses added during this period. Additionally, in 2024, Orlando was ranked first among large U.S. metro areas for small business growth, with a 6.2% increase. This surge is attributed in part to the city's incentive programs, such as Orlando Main Streets, which has created 11,000 new jobs and more than 1,800 new businesses since 2008. Yet despite the positive growth, small businesses in Central Florida still face several challenges that include access to capital, inflation and rising costs, and labor shortages, among others. In this dynamic environment, FAIRWINDS Credit Union has played a pivotal role in supporting small business growth and success in Central Florida through a comprehensive suite of financial solutions, advisory services and community-focused initiatives. Among them: A variety of lending options designed to support small business operations and expansion, including commercial real estate loans, equipment financing, business lines of credit and business auto loans. These financial products are complemented by additional tools such as payroll services powered by Paychex, online invoicing and a Business Money Milestones Assessment to help businesses evaluate and improve their financial health. Serving as a trusted adviser for small business owners. The credit union's commercial lending team offers guidance on critical business decisions, such as succession planning and business valuation. Community engagement and support through philanthropic efforts and partnerships including the FAIRWINDS Foundation, which supports organizations offering financial literacy programming to assist individuals and business owners reach financial freedom. The FAIRWINDS Foundation focuses on improving financial well-being and is a trusted partner in the journey to financial freedom. To talk about some of the small business success stories, Orlando Business Journal held a roundtable discussion on May 8 in which four local small businesses — Exterior Walls Inc., The Little Insurance Shop, Jiracor and Push Button Creative Audio — shared insights about their successes and challenges, the impact of the current economic climate and how FAIRWINDS Credit Union has bolstered their success in Central Florida and beyond. Success isn't one-size-fits-all When we talk about success in business, it's easy to think of towering corporations and billion-dollar revenues. But in reality, it's small businesses that quietly — and powerfully — shape the economy. That familiar phrase of 'small businesses are the backbone of the economy' isn't just a feel-good slogan. It's backed by the numbers. Consider: As of 2024, a staggering 99.9% of all U.S. businesses are small businesses — that's more than 34.7 million, compared to fewer than 20,000 large businesses. And they're not just plentiful, they're essential. Between 1995 and 2023, small businesses created more than 20 million net new jobs, accounting for more than 61% of all net job growth. Nearly 59 million Americans work for a small business, and more than 6.2 million people own one. With such massive contributions, it's clear that success for a small business isn't just about profits — it's about impact, resilience and community. 'Success for us has always been about being where we want to be. For us, it's calling our client list and making sure that our whole team is the right team and is happy when they come into work,' said Josh Bendayan, a partner at Push Button Creative Audio, which creates radio/streaming ads, jingles, podcasts, music licensing and brand music. 'We've got a limited amount of time to do the things we love to do, and that's what success looks like for me.' For Richard Coronado, president of Jiracor, a leading training, logistics and sustainment company, having clear expectations of each job his firm is involved with is very important in his company's success. 'We are headquartered in Research Park (near UCF) and the work we do involves a range of technical services,' Coronado said. 'So, it's important for us to understand what our mission is, what we are going to do and what the goals and metrics are.' However, for many small business owners, true success isn't just measured by profit margins or business growth — it's also about having the time and freedom to enjoy family life outside the workday. That certainly is true for Carlos Moreno, president of Exterior Walls Inc., which specializes in drywall, stucco and EFS services for new and restoration construction. For him, success is all about taking care of his family. 'Success in my business is keeping our employees, our most valuable asset. But for me personally, success is having the freedom to travel with my family,' Moreno said. Alex Martin, owner and insurance agent at The Little Insurance Shop, agreed and said being able to spend time with his daughter is what makes him feel successful. 'I'm a single father, and I have to take my daughter to different places, so to be able to drive her to school or do other things is what success is for me personally. On the business side, it's all about having happy customers.' Navigating obstacles Behind every small business is a story of ambition, resilience and relentless problem-solving. But the path to success is rarely smooth. According to a 2024 report by the U.S. Chamber of Commerce, nearly 60% of small business owners cite inflation and rising costs as their top concern, followed closely by challenges in hiring and retaining talent. Add to that the pressures of cash-flow management, limited access to capital and shifting regulations, and it's clear that small business ownership demands more than just a great idea — it requires constant adaptation and grit, especially depending on your industry. For Ingris Aguilar, owner and insurance agent at The Little Insurance Shop, one of the biggest challenges is rising insurance premiums and the tightening underwriting guidelines that sometimes result in customers being non-renewed by no fault of their own, she said. 'But I feel like we're overcoming that by acquiring new carriers and having more custom solutions for our customers,' she said. Martin agreed and said The Little Insurance Shop also is trying to give customers more options before they go shopping for another insurance carrier. 'As people's rates increase, they're going to do their own shopping,' Martin said. 'So when they do their own shopping, a lot of times as agents, we kind of fall short in not providing those quotes ahead of time. Then they get the renewal, but we don't get the new quotes because they don't ask. 'What we've been trying to do is to provide those quotes through our carriers that we write for to give them those options before they start to shop on their own.' Over in the construction industry, Moreno said his biggest challenge is cash-flow management. 'In construction, we have many obstacles, but a big one is getting paid on time,' Moreno said. 'As a result, we have to focus on collections, but we also were able to get a line of credit that helps make payroll on time.' Meanwhile, for Coronado and Bendayan, AI has been a solution for some of their challenges. 'AI is getting very helpful for us in getting a competitive analysis of our competitors and doing market analysis,' Coronado said. 'As a small business, if I can only hire a few marketing people, for instance, I can use AI as a resource [for some of that work].' Bendayan noted that a lot of people believe that creative services are replaceable by AI, but 'a large part of what we do is the human element in making sure we're doing things that connect with people.' 'AI definitely comes into play when we're doing administrative tasks, facilitating meeting notes, things like that,' he said. 'And AI has entered our world in a big way, where now voiceovers even can be AI generated. It will impact our business at some point, and we're trying to stay ahead of that.' Dealing with economic uncertainty While small businesses face a number of challenges that often are reflective of their specific industry, one big challenge is consistent for all right now: economic uncertainty. As the U.S. economy continues to grapple with inflation, fluctuating interest rates and shifting consumer behavior, small businesses find themselves at the crossroads of resilience and reinvention. Unlike large corporations with deep reserves and global reach, small enterprises often face tighter margins and more immediate impacts from economic turbulence. Even so, across the country and here in Central Florida, many are demonstrating remarkable agility by adjusting business models, rethinking supply chains and embracing digital tools to stay afloat and competitive. 'The company hasn't been affected directly because of the changes in the economic environment. However, we see there could be a possibility that we will be,' said Coronado. He said one area that likely will affect Jiracor is in some of the government contracts he's bidding on. Contracts now are shifting their timing and that, in turn, creates staffing difficulties. 'If I have an employee, and I want that person to work in that contract [that got delayed] and I don't have another contract, what is that person working on?' Coronado asks. 'Do I keep them waiting? As a small business, we don't have deep pockets like large businesses.' For Moreno and many construction industry companies one of the drawbacks is the shortage of manpower and skilled workers, which has been worsened by the new immigration policy. Even so, Moreno said Exterior Walls Inc. does have signed contracts that will keep his company busy over the next few months, 'but the shortage of manpower and skills — especially skills — are big issues.' Bendayan, meanwhile, said his agency has a number of contracts with the Department of Health & Human Services that were signed between October 2024 and the beginning of this year. None of those contracts were canceled, and Push Button Creative Audio is on track for its best year. 'Anytime there is an administration change, contracts typically get frozen for six months to a year,' Bendayan said. 'By and large, however, there hasn't really been any impact with the administration change.' However, the tariff situation is having at least some impact on his business already. 'We do some reproduction parts work overseas from China and Pakistan, and we did stop production of a couple of things,' he said. 'China seems like it's going to be the stickiest to sort out.' As for Aguilar and Martin, the current economic conditions are affecting their customers more than their agency. 'Thankfully, insurance is required right now. You need insurance to drive your car and need home insurance for your mortgage,' Martin said. 'The real negative side is the difficulties for the consumer with the rising price of everything, which makes it harder for them to pay their bill. And when they don't pay the bill, their policy cancels. Now they have that lapse and there are going to be more fees to start a new policy.' The role of community partnerships Here in Central Florida, small businesses thrive when they have access to the right tools, guidance and community support, and FAIRWINDS Credit Union is committed to delivering all three. Through a variety of lending options tailored to meet diverse business needs —including commercial real estate loans, equipment financing, business lines of credit and business auto loans — FAIRWINDS empowers small business owners to expand their operations with confidence. FAIRWINDS also serves as a trusted adviser to small business owners. Its experienced commercial lending team provides strategic guidance on complex decisions such as business valuation and succession planning, helping business leaders plan for sustainable growth and long-term success. 'I had difficulty with bigger banks,' said Moreno. 'FAIRWINDS had a better personal touch, and I felt like they were listening better to my needs.' The biggest impact his relationship with FAIRWINDS has had is through the line of credit that Moreno said has helped spur growth. 'It gave us the assurance for other companies to see,' he said. 'FAIRWINDS also helped us with vehicle purchases as well as the property we purchased.' Coronado first came into contact with FAIRWINDS when his company was starting out at the UCF Business Incubator. Beginning with opening an account at the credit union, his membership with FAIRWINDS now has blossomed into a true relationship. 'What I saw was the personal touch,' he said. 'They took a chance on us after other banks saw us as a risk. And for many of the contracts we go after, it really helps when I can say I have a credit line with FAIRWINDS.' Push Button Creative Audio works with a lot of credit unions, Bendayan said, but his first call always is to Business Banker, Lisa Land with FAIRWINDS because she was the one who first walked in, sat down and talked to us for an hour about who she was and all the things that they can do for us. 'She kept checking in and was always available,' Bendayan said. 'I can't even tell you how many times we've been on the phone with Lisa for a business opportunity or a building that we were looking at or whatever. She's always fast to answer. She's always available.' One of the more poignant instances when that personal touch from FAIRWINDS played out in a big way happened during the pandemic, Bendayan said. 'By the time that the big bank that I had worked with for 15 years came to talk to me about what I wanted to do with PPP, Lisa had already filed my claim and got it paid out,' Bendayan said. Martin and Aguilar, meanwhile, first came into contact with FAIRWINDS because their first office was in College Park, which, at the time, was right across the street from the credit union. 'It was easy for us because they were nearby. Much like the way I love to get the angry customers that are unhappy with their other agent, I was unhappy with our bank, and they [FAIRWINDS] make it really easy to work with them,' said Martin. When The Little Insurance Shop first opened, FAIRWINDS played a big role in not only helping the firm buy property but also get other loans approved, as well, Martin said. 'It's the kind of customer service you typically don't see,' said Bendayan. The panelists
Business Journals
29-05-2025
- Business
- Business Journals
Jumbo loans and 3 other mortgage trends impacting Central Florida homeowners
In Central Florida, the luxury home market is not just about extravagant features; it's about the growing demand for high-end properties. Often, the buyers of these homes will choose to finance them with a jumbo mortgage — a financing option that exceeds the lending limits set by the Federal Housing Finance Agency. In 2025, jumbo loan financing starts at $806,501. 'We're seeing move-up buyers and even first-time buyers making a concerted effort to buy their forever homes,' said Kevin Bishop, assistant vice president of mortgage sales at Orlando-based FAIRWINDS Credit Union. 'They're putting a lot of effort and money into buying these homes because they want a sense of permanence. These higher loan amounts are in demand in this housing environment.' expandFAIRWINDS CREDIT UNION Bishop and his colleague at FAIRWINDS, Dan Felix, vice president, mortgage services, recently shared their insights about jumbo loans and other key mortgage trends. Seizing opportunities in the luxury home market with jumbo loans Luxury homes are in demand nationwide, and prices in this segment have increased 8.8% from a year earlier – more than twice as fast as non-luxury homes. 'For homebuyers interested in the high-end market, a jumbo mortgage opens access to luxury real estate in a way that makes sense financially,' Felix said. 'Shorter-term loans, like a 15-year jumbo mortgage, allow these buyers to reduce their interest rate significantly and pay off their homes faster.' A jumbo mortgage also eliminates the need for multiple loans or complicated financing arrangements. FAIRWINDS offers 15-, 20- and 30-year jumbo loans for high-earning homebuyers. Rates in mid-May were 5.375%, 6% and 6.5%, respectively, and lower than conventional mortgage rates. In addition to low rates, FAIRWINDS offers biweekly payments and 'freedom' principal payment options so homeowners can pay down the loan more quickly and save on interest over time. For those seeking to build their dream home rather than buy, FAIRWINDS offers construction-to-permanent loan program options, including jumbo loan terms, that allow members to convert construction financing into a mortgage when the home is complete. Mortgage rate locks and re-locks Mortgage lock volume surged in March as the housing market transitioned into the spring homebuying season. A lock is an agreement between the lender and the buyer that guarantees a specific rate while the buyer is looking for a home, which prevents the rate from changing because of fluctuations in the market, Bishop said. FAIRWINDS offers a rate lock program with the option to re-lock once during the closing process if rates go down. In addition, while some financial institutions require a contract in place to lock in a mortgage rate, FAIRWINDS does not. 'It gives members one less thing to worry about while they're trying to find the right home,' Bishop said. Home equity for renovations Another current trend is home equity financing. Bishop and Felix point to data that shows people are hanging onto their homes twice as long as they did in 2005 as many older Americans are aging in place. Even Gen Xers are in on the trend, with more than one-third having lived in the same home for at least 10 years. 'Home equity serves as an option for members looking to invest back into their homes with affordable renovations,' Felix said. Home equity lines of credit and home equity loan originations were up by 6% and 8% respectively in last year's third quarter, marking the 11th quarter of consecutive growth. At FAIRWINDS, members are encouraged to save up and pay cash for renovations. However, members have access to a range of home equity solutions, including home improvement-specific financing, if needed. The key, says Felix, is to make sure you have a plan in place to pay off the balance as quickly as possible. Special mortgage programs Bishop and Felix are also seeing growth in the custom programs the credit union offers to first-time homebuyers, community heroes and physicians. For example, the Physician Mortgage Program helps doctors, dentists and orthodontists finance homes with no private mortgage insurance requirement, no closing cost options and as little as 0% down. This is especially helpful to doctors who are early in their career and may not have liquid assets for a down payment, Bishop said. 'No matter what option a member selects, our priority is to help you pay off your mortgage as quickly as possible,' Bishop said. 'The goal of financial freedom is to be able to live generously and give back to others.' At FAIRWINDS we embrace a 'better together' approach, offering you a personalized, full range of mortgage lending options. We're your dedicated partner, supporting you every step of the way. Learn more.
