Business

Published: Saturday, Jun. 27, 2009

Biz Buzz: Paso nightspot to change hands, style

Level Four Restaurant & Lounge buyers will aim for the 30-and-older crowd, they say

Comments (0) |

A deal is in the works to move one of downtown Paso Robles’ nightclubs into new ownership, bringing with it a slightly different business model and plans for new decor.

The Old Custom House in Avila Beach and businessman Ted Keller of Paso Robles have picked up Level Four Restaurant & Lounge, a club and eatery accessible by elevator in the Acorn Building at 1216 Park St.

The transaction is also lead by Darren Smith, chief operating officer of Compass Health, which co-owns Old Custom House and the Downtown Brewing Co. locations in San Luis Obispo and Paso Robles.

Smith declined to disclose the cost of the sale, but said the transition began in mid-May.

“Several of the employees re-applied and became re-employed there,” Smith said, declining to go into specifics but adding that the new business model downsizes the staff.

Multiple attempts to reach the previous owners were unsuccessful, but people tied to the North County business community said they had to sell the restaurant because of financial reasons.

Guests will now see new eating options at the 6,500- square-foot establishment, as the main dining room selections, centered on steak and seafood, are brought into the lounge.

Live music during happy hour will remain, Smith said. And restaurant-goers age 30 and older will see more promotions aimed at them as they are the business’ new target market.

The previous dining room, closed off behind two large wooden doors, is now reserved for large parties and events.

“Being that it’s in a basement and kind of hard to find, we’re going to further create the atmosphere of a speakeasy,” Smith said of the lounge, referencing the decor of the illegal nightclubs that sold alcohol during the Prohibition era of the 1920s and ’30s.

“It was a neat idea (the previous owners) started, and we’ll put it throughout the location,” he said.

The Tribune is not publishing the names of the original owners because they have not been verified. The deal should finalize in about 60 days, Smith said, pending escrow agreements and licensing with the state Department of Alcoholic Beverage Control.

— Tonya Strickland

SBA loans offered in federal stimulus

Small businesses on the Central Coast might soon be eligible for interest-free loans of up to $35,000 under a program created by the federal economic stimulus package, according to Rep. Lois Capps, D-Santa Barbara.

The program enables qualified small firms to take out loans to pay down existing business debts. Borrowers pay no interest, and repayment does not begin for one year.

To qualify for the loans, small firms must demonstrate they are experiencing immediate financial hardship because of the recession, but nonetheless deemed by the Small Business Administration to be viable.

The loans would be made by commercial lenders and could be used for payments of principal and interest for existing, qualifying small business debts such as credit card obligations, mortgages, lines of credit, and balances due to suppliers, vendors and utilities.

The act also contained other measures aimed at helping small businesses access credit, according to Capps’ office.

For instance, the new law increases the percentage of a loan that SBA can guarantee, makes SBA-backed loans more affordable, and provides tools to unfreeze small business credit markets, helping small companies access capital at affordable rates, she wrote.

To apply, businesses should visit local SBA-approved small business lenders. The loans will be available through Sept. 30, or until appropriated funding runs out.

Visit www.sba.gov/recovery/arcloanprogram.

— Bob Cuddy