Case Studies

River City Bicycles


$1,311,000 | SBA 7(a) Loan | Portland, OR

Learn how a small business loan from CapitalSource facilitated River City Bicycle's expansion.

River City Bicycles sign

Located in a two-story, 10,600 SF retail shop in Portland, OR, River City Bicycles (RBC) had just enough space to display their merchandise and accommodate a second-floor, indoor bicycle track for customers to test ride their bikes. Founded in 1994, RCB provides bicycle repair services and sells bicycles, accessories, and apparel.

RCB’s expansion plans—and thus the need for a loan—stemmed from a desire to sell leftover odd-lots of bikes, which their suppliers were forced to discount heavily. RCB’s vision? Turn a problematic situation for their suppliers into a winning outcome for RCB, their customers, and their suppliers by opening a complementary bike outlet store.

CapitalSource provided David Guettler, sole owner and president of the company, with 90% financing, allowing for a minimal cash outlay and the purchase of a 5,000 SF building two blocks away from his original store.

RCB’s new outlet store will occupy 51% of the new building. With their suppliers’ full support, they will now be able to offer their customers additional discounts as well as bike rentals—a growing demand in the Portland community.

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