Redding, Calif. (PRWEB)
January 12, 2021

TMC financing, an SBA 504 real estate lender, recently worked with hotel owner Alex Patel to secure total funding of $ 2.8 million. The funds were used to purchase the much sought after Americana Modern Hotel, located in downtown Redding, California. The Americana Hotel is a small road trip motel equipped with modern amenities, detailed aesthetics and exceptional service.

“The acquisition of Americana was ideal because it diversified my portfolio,” Patel explained. “I run another budget hotel nearby and now that I own the Americana, I can also offer my clients a more upscale boutique style experience.

“I have wanted to buy the Americana property for some time. I drove by, parked and stared, trying to figure out how it could be mine. I approached the previous owner many times, but they refused to sell. In February 2020, they finally agreed but a month later COVID hit. I couldn’t find a lender to get the financing I needed. Fortunately, I discovered the 504 program. ”

Why the SBA 504 program was the right choice

The SBA 504 program has enabled Patel and his family to obtain hotel financing on extremely favorable terms despite the difficult financial climate.

“I was refused by several banks due to the economic crisis caused by the pandemic and I was afraid of losing my opportunity,” Patel explained. “Fortunately, I was referred to TMC Financing by another small business owner. TMC provided the advice I needed. I quickly learned that the 504 program was ideal for small business owners like me. ”

A Certified Development Corporation (CDC), such as TMC Financing, is a non-profit organization designed to support economic development within its community through the SBA 504 program. CDCs guide business owners through the process. throughout the loan process and act as an advisor and advocate for the homeowner throughout the life of the loan.

“We were faced with a tight closing deadline. TMC not only made sure all documents were submitted correctly, but also helped me secure 80% financing with a historically low interest rate, fixed, for 25 years – unheard of ” , Patel explained.

“The SBA 504 loan is one of the most beneficial hotel finance options available,” explained Kurt Chambliss, executive vice president of TMC Financing. With the low down payment and lower-than-market fixed interest rate, hoteliers can keep their working capital and reinvest it in their business. “

“I’m a lucky guy,” Patel exclaimed. “I bought a brand new hotel property that I really wanted. On top of that, the SBA covered the first six months of payments on the 504 loan owed to COVID. As a result, I kept enough cash for payroll and reorganized my financial priorities. My family and I are delighted to have reached this milestone and look forward to continuing to grow our business. “

SBA 504 financing for your hotel

Using the SBA 504 loan program hoteliers can take advantage of below-market fixed rate financing for the purchase of construction or expansion of commercial real estate, including equipment and furnishings. Hotel owners can use the SBA 504 refinance loan to reduce occupancy costs and access cash trapped in commercial real estate. Hoteliers can confirm that they qualify for an SBA 504 loan by contacting one of our SBA 504 loan experts.

Learn more about TMC financing

TMC financing is the premier CDC in the western region of the United States and has secured funding for projects valued at over $ 10 billion across California, Nevada. More than 6,000 businesses have benefited from this funding, resulting in the creation of around 60,000 jobs.

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