Alabama-based Epiphanys recently received a $350,000 acquisition loan from LISC to expand its capacity to serve federal agencies and fuel growth through new contracts. The loan was supported by Truist, Mackenzie Scott, and the Wells Fargo Open for Business Fund.
What started for entrepreneur Shaka Woods as a side gig selling handbags for extra income has blossomed into Epiphanys, a growing business filling the need for embroidery and heat-press services across Alabama.
At first, Woods outsourced name customization requests from clients. But with a little research and the purchase of an embroidery machine in 2010, she started providing the service herself to meet the high demand from colleges and fraternities nearby for customized Greek apparel and Masonic regalia. Three years later, the entrepreneur left her 15-year role as a data coordinator in quality control to run the business full-time.
“I saw the opportunity to take the leap of faith and opened a Greek and Masonic store, incorporating custom embroidery as my main niche,” she said. “The name Epiphanys came from a sudden realization—an ‘Epiphany’ about this very concept, which has now grown into a thriving business for over 10 years.”
A recent $350,000 acquisition loan from LISC with support from Truist, Mackenzie Scott, and the Wells Fargo Open for Business Fund helped Epiphanys continue to grow, purchasing an 11,000-square-foot warehouse in Anniston, Ala. that provides enough space to scale the retail store, increase production capacity, and create dedicated offices and workspaces. The move will help Epiphanys keep serving individuals, businesses, schools, nonprofits, churches, and athletic teams, and travel to conventions and events targeting fraternal, civic, and other organizations that purchase customized items.
“LISC financing is allowing us to grow in ways we couldn’t have managed on our own,” Woods said.
Woods sees Epiphanys as an integral thread in the fabric of her community. In the new location, Epiphanys will support economic growth while increasing employment opportunities for residents and offering retail rental spaces for other local businesses.
“Our target market is currently underserved, and there’s a growing need for personalized, high-quality products for these groups,” she said. “By offering these services, we’re filling a gap in the community and providing a unique market that previously had not been locally accessible. Just as the community has sewn into our business, we wish to do the same."
The company quickly outgrew its previous 2,500-square-foot leased space that was bursting at the seams with the addition of new machinery and extra inventory to counter COVID-related supply chain delays.
Woods ran into some roadblocks while seeking financing through traditional lenders. Many of them required higher revenue levels than the company had at the time, and the pandemic created uncertainty around the viability of retail businesses, with lenders exercising caution due to the decline in foot traffic and customers’ hesitance to make in-person purchases. Even when approved, the interest rates were unaffordable.
Woods’ experience isn’t an anomaly. Only 13 percent of Black-owned and 20 percent of Latinx-owned businesses reported receiving the full share of financing requested from banks to the Federal Reserve Banks in 2021, compared to 40 percent for white-owned firms.
“Epiphanys embodies everything that we want to try and support,” LISC Business Development Officer David Johnson said. “[It’s] a minority and woman-owned business that ran into some issues with traditional lending options while trying to build assets."
Flexible financing from LISC allowed for a different approach on items such as loan-to-value ratio, that might not be possible with a traditional lender, Johnson explained.
Commercial real estate loans are often limited if a business doesn’t have significant cash-on-hand of the loan size, he added. LISC also guided Woods through the process of receiving an Equitable Recovery Program grant.
“We were in a very unique position through both the grant and our lending process to meet that cash-on-hand challenge,” Johnson said.
LISC provided Epiphanys with technical assistance to help Woods navigate the complexities of looking at commercial real estate for the first time, including building needs assessments and final due diligence items.
“One thing that truly stands out about LISC’s support is their unwavering commitment, even when we faced setbacks,” Woods said. “Despite two failed contracts on other buildings, LISC never gave up on us. They continued to support us throughout the process, remaining dedicated to helping us find the right space to accommodate our expansion dreams. We are truly grateful for LISC’s steadfast support and belief in our vision.”