We are going to be able to expand our business and improve both hotels. The low down payment requirement is what allowed us to purchase these two properties concurrently.
NAPA, Calif. (PRWEB) October 08, 2019
TMC Financing, a commercial real estate lender specializing in SBA 504 loans for growing businesses, recently helped hoteliers Vikas Patel, Chotubhai Patel and Tejal Patel, secure $5.4M in total project financing. The funds were used to purchase two hotel properties, the Bel Abri Napa Valley Inn and the Elm House Inn, both located in Napa, CA. By utilizing multiple SBA 504 loans, the Patel’s were able to obtain 85% hotel financing at a below market rate, fixed for 25 years.
The Bel Abri and the Elm House are strategically located directly across the street from one another. The Bel Abri is unique in that it combines modern style with inviting Napa charm. It includes contemporary décor, brand-new furnishings and beautiful artwork. Conversely, the Elm House has a more rural aesthetic. Through these two 504 acquisitions, the Patel’s can better accommodate their guests and manage the properties more effectively.
“Owning both properties made perfect sense for us,” owner Vikas Patel explains. “The Elm House has 22 rooms – by adding the 15 rooms at the Bel Abri, we were able to create a symbiotic relationship between the two hotels. Our customers can now choose between a contemporary or a more provincial experience. The best part is, we can personally manage both hotels because of their proximity.
“Additionally, we have a great opportunity to help the Bel Abri reach its maximum potential, with minimally increased overhead - including payroll. We are going to be able to expand our business and improve both hotels. The low down payment requirement is what allowed us to purchase these two properties concurrently.”
Kurt Chambliss, Executive Vice President of TMC Financing who worked with Vikas Patel said, “The SBA 504 loan is one of the soundest financing options available for strategic hotel financing. With the low down payment, hoteliers can conserve their working capital and reinvest it into their business. The Patel’s recognized this opportunity, which is why they choose the SBA 504 program.”
A Certified Development Company (CDC) is a nonprofit organization built to support economic development within its community through the SBA 504 Program. CDCs will guide business owners through the entire loan process and act as the owner’s advocate throughout the life of the loan.
“It was clear that TMC Financing knew the best route to take and which lenders to partner with,” Vikas concludes. “The terms of the loan were far better than any other financing option I had come across – and we had a team of experts to answer any questions we had.”
Is the 504 Program the Right Choice for Your Hotel Business?
By utilizing the SBA 504 Loan Program hoteliers can take advantage of below-market, fixed rate financing for the purchase, construction or expansion of commercial real estate, including equipment and furnishings. This flexibility is what makes the SBA 504 program so attractive for current hotel projects. It allows hotel owners to take advantage of today’s expanding market with a customized financing package. Hotel owners can confirm they meet the qualifications for an SBA 504 loan by contacting one of SBA 504 loan experts.
More About TMC Financing
TMC Financing is the No. 1 CDC in California and has ranked in the top five CDCs nationwide for two decades. During the past 35 years, TMC has provided over $9 billion in financing for more than 5,000 businesses throughout California and Nevada. For more information on SBA 504 loans and the local businesses they support, visit tmcfinancing.com.