Featured CRF Loan: Tualatin Chevron

Business Names /Operating Companies:	Saphire Petroleum, Inc. dba Tualatin Chevron
Borrower /Eligible Passive Company	Saphire LLC
Congressional District:	OR 1
Eligibility:	Minority business owner & project will save 18-20 jobs
Evergreen/CRF Loan:	$700,000
Financing Purpose:	Purchase of an existing Chevron gas station with convenience store. In addition, assuming the existing car wash lease as well as the option to purchase.
Financing Structure:	64.3% / 20.1% / 15.6%
Industry:	Gas station, convenience store, car wash
Jobs Created & Retained:	Retain 18-20 jobs.
Lending Partner:	California Bank & Trust
Occupancy:	100%
Project Location:	9770 Tualatin Sherwood Road, Tualatin, Oregon
CRF Loan Funding	April 7^th, 2008
Total Project Cost:	$3,487,300

This project was not eligible for a 504 loan because the business had used up its available SBA funds in a previous 504 loan. It was not eligible for a CRF New Markets Tax Credit loan because it is not located in an eligible low income census tract. However, it did meet the criteria for the CRF Business Loan program. The borrower is a minority business owner and the project will save 18-20 jobs.

Saphire Petroleum, Inc. is an Oregon corporation that was established in April, 2007 by Asit "Andy" Patel to own the Tualatin Chevron.

Tualatin Chevron is located in Tualatin, Oregon on the south side of Tualatin-Sherwood Highway on the west side of town. The station has been in operation since 2003 by Tee-Jay, Inc. The station has enjoyed growing sales due to the increasing traffic and population in Tualatin. The project is located in close proximity to I-5 and I-205 with excellent visibility and access. The gas station has 10 pumps under a full canopy and gas volume is approximately 200,000 gallons/mo. Andy Patel has been the on-site manager/operator of the location since 2004.

Asit "Andy" Patel came to California Bank & Trust seeking to purchase the Tualatin Chevron. He had owned and operated the Chevron in Newberg, Oregon since January 2004 when he obtained an SBA 504 loan from Evergreen for its purchase. In October 2004, Mr. Patel agreed to manage the Tualatin Chevron owned by the same seller. At the same time, the parties entered into an Option Agreement for the purchase and sale of the Tualatin Chevron and an adjacent car wash on a separate lot. The seller owned the gas station and real estate, but leased the car wash real estate and equipment from an unrelated third party. The seller held the option to purchase the car wash and that right has been transferred to Mr. Patel along with the assumption of the existing lease. However, the car wash was not included in this project.

The business continues to be a Chevron branded gas station with a Dealer Supply Contract with Chevron Products Company. The existing contract has been assigned to the borrower. Saphire LLC is the real estate holding company also established in April, 2007 to hold the real property.

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