Kevin O'Neill started working in restaurants at 16 years old while still in high school. That early passion for food led him to the Culinary Institute of America in New York City, and after about 15 years cooking professionally in restaurants and hotels, he channeled that experience into gourmet catering. That is how Neillio's was born.
From Arlington Startup to Lexington Staple
Neillio's launched in Arlington, Massachusetts before moving into its current Lexington location in 1998. The business shared the building with a liquor store, and as Neillio's grew year after year, O'Neill eyed the basement as the ideal space to build out a production facility and expand operations.
Today, Neillio's occupies the entire building at 53 Bedford Street. Catering gets prepped in the basement and deliveries head out the door by 11 AM. Upstairs, a daily rotation of prepared foods, made-to-order sandwiches, and frozen dinners fills the retail store, where hundreds of visitors come each week to grab lunch or pick up dinner for the family.
Why Buying Commercial Real Estate Felt Out of Reach
O'Neill had dreamed of owning his building for years, but it always felt out of reach. About five years ago, he missed an earlier opportunity to buy when the building caught fire. He was priced out and unaware of the financing options available to small business owners.
Then the building became available again. O'Neill, sitting on the edge of his seat, could not believe how the stars aligned.
How the SBA T.H.R.I.V.E. Program Connected the Dots
The SBA's T.H.R.I.V.E. Emerging Leaders Reimagined program is a free, six-month executive-level training series designed to help small business owners accelerate growth. The program provides hands-on training, mentorship, and connections to financial resources and industry experts.
For O'Neill, the timing was everything.
"The timing was actually perfect," said O'Neill. "I was fortunate to get into SBA's THRIVE program while the building came up for sale and that's when I learned about the SBA 504 program."
Through the T.H.R.I.V.E. program, O'Neill connected with Leader Bank Chief Lending Officer Matthew Pierce. Pierce helped structure a deal that allowed O'Neill to preserve capital for future expansion, hire more employees, and finally own the asset he had been operating from for decades.
How the SBA 504 Loan Made the Deal Work
The SBA 504 loan program provides long-term, fixed-rate financing for small businesses purchasing commercial real estate, constructing new facilities, or buying major equipment. The program is structured as a partnership between three parties:
- A bank or conventional lender covers up to 50% of the project cost
- A Certified Development Company (CDC) provides up to 40% through an SBA-guaranteed loan
- The borrower contributes as little as 10% as a down payment
For O'Neill's purchase, Leader Bank provided the conventional first mortgage and CDC New England partnered with them to package the SBA 504 loan. This structure gave O'Neill access to a below-market fixed interest rate with a low down payment, preserving cash flow for the business.
From Renting to Building Equity After 25 Years
The transformation of Neillio's space tells the full story of O'Neill's dedication.
"When we started 25 years ago, we didn't even have this space," said O'Neill. "It was the first floor only. We cut the concrete, put the stairs in, put the elevator in... so we occupy the entire basement of the building right now."
What was once a shared retail storefront is now a full-scale catering operation with production space, retail operations, and room to grow.
Lessons in Longevity from a 25-Year Small Business Owner
O'Neill's formula for success has not changed over the decades. His advice for small business owners looking for longevity: "Quality, consistency, service, and price. Keep them consistent and work hard every day at it."
His story also highlights an important lesson for business owners who assume purchasing commercial real estate is out of reach. Programs like the SBA 504 and resources like the T.H.R.I.V.E. Emerging Leaders initiative exist specifically to help small businesses make these investments with manageable terms and expert support.
Is an SBA 504 Loan Right for Your Business?
If you are a small business owner renting commercial space and have considered purchasing your building, the SBA 504 loan program could help you make that move with as little as 10% down. With long-term fixed rates for up to 25 years and no balloon payments, 504 loans offer stable, predictable payments that often compare favorably to rent.
CDC New England has been helping small businesses across Connecticut, Massachusetts, New Hampshire, Rhode Island, and Vermont access SBA 504 financing since 1981. As the only Premier Certified Lender serving New England, we work alongside your bank to structure the deal and guide you through the process.
Ready to explore your options? Contact CDC New England to learn how an SBA 504 loan can work for your business.
This article does not constitute or imply an endorsement by the SBA of any opinions, products, or services of any private individual or entity.
