Overview
For years, Eli, Jasmine, and Kai traded texts about quitting their jobs and “finally doing something of our own.” They weren’t dreamers without direction—they were working professionals with side hustles, tiny savings accounts, and a deep frustration with waiting for a future that never seemed to arrive.
Eli, an architect, was used to working on other people’s visions, not his own. Jasmine managed a busy café, knowing every supplier and every number behind the counter but never seeing the upside of ownership. Kai, an Etsy seller, built an online following but longed for a brick-and-mortar space where art and community could thrive.
They didn’t have wealthy backers. They didn’t own homes they could borrow against. What they did have was a clear idea and about $12,000 scraped together in combined savings. It was enough for a down payment on used espresso equipment, a few mismatched tables, and the first month’s rent in a small but visible storefront.
When they went to a bank for help with the rest—leasehold improvements, inventory, and working space—they got the same polite rejection: not enough collateral, too little history, too small to bother.
That’s when they turned to CADDA.
The 5 Cs in Action
Character – More Than a Credit Score
Their credit histories weren’t flashy, but they had no red flags. Each had years of stable rental histories, modest debts paid on time, and roots in the neighborhood. They weren’t rolling the dice on a whim—this was where their kids went to school, where they wanted to build their lives.
Capacity – Skills That Translate to Ownership
Jasmine had already run someone else’s café for years. Kai’s handmade art sold out consistently at pop-ups and markets. Eli was still keeping his full-time architecture job, guaranteeing a safety net as the business got off the ground. They showed they weren’t leaping blindly—they had experience and a layered plan.
Capital – Modest But Committed
With $12,000 pooled together, they didn’t have much—but they had everything they could reasonably put in. For lenders, the commitment mattered just as much as the amount.
Collateral – Real Assets, Creative Coverage
The espresso machines, coolers, and fixtures may not have been new, but they were tangible, insurable assets. CADDA built the loan structure around them, giving the lenders something solid to tie the loan to without demanding homeownership or large outside guarantees.
Conditions – A Market Ready to Respond
The city’s appetite for coffee culture, neighborhood retail, and locally-owned community spaces was booming. Roost & Co. wasn’t just a café—it was a hybrid space at exactly the right time.
The Breakthrough
With CADDA’s guidance and mentorship from a local SBDC, they refined their financial plan and built realistic projections showing how multiple revenue streams—coffee sales, art consignment, workshops—would cover the loan.
Instead of walking away empty-handed, they secured a $65,000 SBA 7(a) Community Advantage loan. It was the kind of financing structured for people exactly like them: modest savings, solid skills, and a business plan grounded in real community need.
The Results
- Opened a small but vibrant space blending coffee, art, and local retail.
- Hired part-time staff within six months, creating local jobs.
- Balanced three steady revenue streams to smooth out seasonal dips.
- Stayed current on loan repayments while slowly expanding offerings.
Most importantly, they created something that was theirs. They didn’t need a family fortune or years of bankable wealth. They needed a lender who looked at their character, their collateral, and their commitment—and gave them a shot.
Why It Matters
Roost & Co. proves that first-generation entrepreneurs don’t have to wait decades to build equity before they build their dream. With an SBA 7(a) loan and the right guidance, even a small nest egg, a handful of skills, and the courage to take the leap can be enough to make the transition from “someday” to “open for business.”