Small Business Association (SBA) funding is a valuable resource for many of our clients. But it’s not for everybody. We always consider whether our clients are best served by SBA loan products or if other loans may be the better fit.

At GRP Capital, we get to know you first to determine your goals, your business plan, your aspirations and what keeps you up at night. Then we get to work looking for the best financing for you—one that matches your goals and needs.

SBA loans offer various small business guaranteed loans that can be utilized to fit diverse financing needs including acquisitions, financing of debt, facilitating improvements, issuing credit lines and other traditional development.

Conventional loans are traditional mortgages provided by banks, credit unions, savings institutions and other traditional financial institutions.

Bridge Loans are an excellent temporary solution, one that GRP is uniquely positioned to provide utilizing our GRP Capital Debt Fund. Bridge loans can be used as an intermediary financing option until a borrower secures permanent financing. The flexibility of bridge loans allows for quick and strategic business decisions, essentially allowing our clients to strike when the iron is hot.

Non-Recourse Loans are a great option for a highly profitable venture seeking funding for continued growth opportunities. The best matches for non-recourse loans are clients with a long history management, with liquidity for higher equity injections than conventional or SBA loans.

Below are some of the aspects of financing that we consider when we determine the best match for our client’s needs.

Timeline: Bridge loans can be closed quickly, followed by conventional loans. SBA loans can take the longest to close because of the double approval process (lender and SBA must approve). The SBA, as a federal government agency, is adversely affected by government shutdowns. As we write this Spotlight, we are in the midst of the 3rd government shutdown in one year. During this time, loans cannot be approved by the SBA, which prevents the loans going to closure.

Size of Loan: Conventional loans and non-recourse loans are not limited by an upper amount, only by the lender’s choice of upper limit. SBA loans are targeted towards smaller businesses, so they are typically reserved for projects under $5M.

Terms: What will work best for the client? Adjustable rates? Fixed rates? Longer or shorter amortization? We search for the best match only after we understand what the client’s priorities are.

SBA Eligibility: SBA financing is designed to be the loan product of last resort for borrowers. If the financing can be acquired through conventional means, the SBA encourages borrowers to do that. Certain projects are simply ineligible for SBA financing, including ground-up construction. Each guarantor for an SBA loan has a limit for how much he or she can guarantee. That magic number is $3.75M. So any guarantor cannot be signing off on multiple loans if they add up to more than $3.75M

Spotlight on Motel 6 – Weatherford, Texas

GRP recently arranged the financing and purchase of the Motel 6 in Weatherford, Texas. The property had been stabilized, turned around, and the owner was eager to sell in order to focus on other properties. Both the current owner and the prospective buyer were ready to complete the transaction, but there was a very short time frame needed.

We at GRP pride ourselves on our ability to usher a loan from origination to closing, but we are aware that SBA-backed loans cannot move lightning fast. Because SBA requires a double approval process from both the lender and the SBA, there is a built-in lag time.

For the principals involved, the quick turnaround was non-negotiable. We were able to utilize our debt fund and conventional financing to make both buyer and seller happy, close the loan in 6 days and allow both of them to move forward with their business plans for 2019.

Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.

December—a time for family vacations and nationwide travel, creates a natural demand in the hospitality industry. Successful entrepreneurs plan to take advantage of this high demand, working hard to maximize profits and to capture business when it literally walks in the door. From our clients to you, the following are some best practices during these busy holiday months.

Keep Accurate, Timely Financial Records of Previous Holiday Seasons

It’s really important for you to know how busy you truly are during the holidays. In your mind, you’ll remember the previous holidays as “busy,” but exactly how busy were they and what were the specific components of this frenetic time?

• What was your occupancy rate?
• How did your guests find you? Through your website or through third party sites?
• How profitable were you during this time?
• What other revenue items were higher and lower, including sales in the in-hotel market, room service if available, rentals of cribs and extra beds and sales of meeting rooms?
• How long did your busy season last? For locations in warm climates as well as for those whose guests come to take advantage of winter sports, the busy season may extend far beyond Christmas to New Year’s week.

Plan Properly for the High Season

Once you have a clear picture of how busy you’ve been in past holidays, you can make better plans for this year. Consider past experience as you decide on staffing patterns, rate structures and listings on third-party sites as well as your own website.

It’s important to investigate if you left money on the table last year. For instance, if you didn’t offer room service on Christmas Day but there was a demand for dinner or snacks, you may want to consider adding this as a revenue source.

Finding Ways to Increase Profits Next Year

Would capital improvements allow you to increase sales or occupancy?

Some of our clients have found that certain amenities differentiate their properties from their competition. Spending money on creating these distinctions may pay for themselves in short order. Capital improvements that can maximize holiday revenue include:

• Changing franchise affiliation
• Adding or renovating guest rooms
• Updating common areas
• Upgrading meal service
• Creating upscale spas and fitness centers
• Providing transportation to area attractions, in both warm and cold climates

The Arrowhead Treetop Lodge in Lake Arrowhead, California showcases some of the best practices in order to capitalize on holiday business. Our client, whom we know well as we had arranged previous financing for him, was an experienced hotel owner and operator in the vicinity. He knew the subject property well and saw the potential for increased revenue with capital expenses and new management ideas.

Arrowhead Treetop Lodge is uniquely situated near the shores of Lake Arrowhead. It is surrounded by natural pristine beauty, but is not so remote from large metropolitan areas, making it a perfect getaway for travelers and tourists. Our client also saw the huge potential for group rentals and increased wedding business, which the current management was not taking advantage of.

We were able to match our client with a Small Business loan, which served three purposes. It allowed him to purchase the new property, it included funds for improvements and it also rolled in a refinance of his current nearby property. This multi-pronged approach enabled our client to not only take possession of this holiday destination, but to also make the changes needed to increase occupancy and profitability. Our client is ready for the holiday season in this beautiful locale and will be able to make the most of his excellent management experience.

Utilizing loans to maximize future profits

If you believe that capital improvements would allow you to increase occupancy and profitability, talk to our GRP associates about obtaining financing to meet your goals. We will evaluate the marketplace and your property’s revenue potential. We will help you determine ways to finance your dreams that are the most beneficial for your current cash flow as well as future revenue streams.

Merry Christmas, and Happy Holidays to all.

Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.

Whether you’re talking about Halloween costumes, t-shirts, or commercial loans, one size doesn’t fit all. Financing needs are unique; apart from the loan vehicle and debt size, there are many other
aspects to consider.

We analyze each client’s needs prior to engagement, so we can try to pair their needs with the
appropriate loan structure. We don’t try to fit your loan into preconceived notions. It’s
important that our team understands why you are seeking funding, what this funding will allow
you to do and what the possible impediments could be for obtaining and closing the loan, as
well as properly managing those payments over time.

TownePlace Suites by Marriott – Jacksonville, FL

The proposed TownePlace Suites by Marriott in Jacksonville, Florida is a perfect example of an
individually tailored plan.

Our client had really proven himself as an accomplished hotel developer. He owns and operates
successful properties around Jacksonville and understands his market and its needs.

Jacksonville’s economy is strong, which positively impacts the hospitality economy. Jacksonville
is a large port city and has large employment in military and government. In addition, there are
several large hospitals nearby, including the renowned Mayo Clinic. The combination of all of
these employers as well as the need for extended stay products among the patients and
patients’ families of the nearby medical centers are large drivers of room demand.

Fortunately for our client, there was a shortage of extended stay properties in his submarket
and he intended to address that shortage. Our client had purchased a nearby plot and sought
out funding for an upper midscale hotel, one which would cater to both short-term and
extended stays. In order to maximize his purchase, his team retrofitted the six-story
development into the smaller plot size.

GRP sought a local lending partner, one who understood the market and its needs. However,
we understood that six-story properties are more expensive per square foot than five-story
properties, which was the typical model for TownePlace Suites. Through our urging, we were
able to get our lending partner comfortable with the higher construction budget, because it
would allow for more guests in a smaller footprint. In addition, we were able to draw attention
to the current creditworthiness of our client.

The loan closed in mid-October and construction is expected to commence before the end of
the year. The hotel should be ready for occupancy in early 2020.

What are your short-term and long-term revenue goals?
Are you looking for a funding in order to consolidate debt? Are you thinking of changing a
franchise association to drive more business? Do you see aspects of your business that show
obvious trends towards growth?

Should you utilize Small Business Administration funding?
Do your needs for funding meet their qualifications? Does their loan structure fit your holding
period? Can your property sustain the cost of capital in the event of a rate hike?

What kind of structured loan works the best for you?
Do you need a longer or shorter term? Do you need an interest only payment structure during
renovation?

How will this loan be secured?
What role will collateral play? How many guarantors will there be and what are their roles in
your organization? Do you have a mix of personal and corporate guarantors?

Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.

We get a lot of questions. One of them is, “What does GRP Capital do?”

Ultimately, we get to know our clients so that lenders will want to fund their dreams.

We love our clients. They are ambitious and hard-working.

Our clients have strengths but also weaknesses.

We find that most clients are simply not skilled in talking to lenders. Why not?

• Clients do not deal with banks every day.
• Not every person knows how to present their business plan and explain their current business in a way that inspires lenders to open their wallets.
• Some clients find discussing money uncomfortable and too personal.
• We even have clients who actually get offended talking to banks and find the questions intrusive.

This is where we come in.

We get to know you and only then do we talk to lenders on your behalf. Our team creates a story of you, how you function as a business owner and manager. We explain why you need financing and what the most important aspects of a future loan are. Ultimately, we package your loan request in a form that lenders want. The questions that lenders ask don’t bother us. We can deal with them calmly without getting hot and bothered.

GRP Capital has saved deals, intervening before clients spoke directly to lenders. Our team has also seen lenders walk away, because clients blew it during their interactions with potential lenders.

Here’s another question we get a lot: What does GRP in GRP Capital stand for?

That’s a great question.

Understanding our “letters” helps you understand what is important to GRP Capital and what our core principles are.

The letters GRP in GRP Capital share the initials of our leadership team. However, for us, the letters also stand for these founding ideas of our business:

G: The Symbol of Ganesh in GRP Capital

Ganesh, who many turn to before major enterprises, symbolizes prosperity and new beginnings. Our clients’ economic security is constantly on our minds and guides us in everything we do. Ganesh, then, not only is a visible reminder of the security that prosperity brings; Ganesh is also a symbol of the Indian roots of our business and GRP Capital’s leadership team.

R Stands for Realization: What We do at GRP Capital

Realization of our clients’ dreams is what we do every day. Our clients come to us with their diverse challenges and their goals. We help them improve their business practices and find appropriate funding to realize their dreams. For some of our clients, their dreams include purchasing a new business. For other clients, realizing their dreams means having greater economic security, stable financing or improved cash flow. Sometimes the realization of a dream includes finding a loan; sometimes realizing a dream includes setting other business goals and finding a loan at a more auspicious time.

P is for People:

At GRP Capital, people are our business. Our job is to work with and for our clients, each of whom is their own person with their own unique set of goals and challenges. We are able to treat each client as an individual and provide them with personalized, appropriate guidance and funding. We also know our lender network extremely well. These relationships allow us to match our clients with the most appropriate funding.

Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. Whether you are looking to refinance or purchase, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you. Contact a GRP Team member. 

Our team at GRP Capital is passionate about developing intuitive funding solutions for our borrowers. Whether you are investing in your first commercial business or expanding your existing portfolio, our refreshed service selection offers a differentiating customer approach that upholds our corporate values as well as those of our clients. Here are some of our past transactions that display our diverse experience and client offerings.

Fairfield Inn North I-10 – Tallahassee, FL

Our team helped an investment group secure financing to acquire the Fairfield Inn North I-10 in Tallahassee, FL. This 79-room, 3-story interior corridor property was required to complete an upcoming Property Improvement Plan (PIP) to stay in compliance with brand standards. Our Director of Operations, Krishan R. Patel, had the following to say:

We were pleased to provide the means necessary to assist the group in adding to their portfolio and help capture market share within their competitive set.

Holiday Park Office Portfolio – Lansing, MI

Senior Associate, Ryan Dumas, recently helped a client acquire a 10 building, 136 unit office portfolio in Lansing, MI. The client came to GRP Capital needing a quick closing to meet a purchase/sale deadline. We chose to fund the acquisition using our GRP Capital Debt Fund of private lending solutions for this qualified borrower. We were proud to provide funding for the acquisition in only three days after engagement. The client was very impressed with the speed and effectiveness of the fund and our company.

Industrial Condominium – Orlando, FL

Our associate, Shail Madhav, was proud to help provide recourse funding for the purchase of a 2-story, 7,160-square-foot flex industrial condominium in Orlando, FL. The property was purchased for the use of a furniture, fixture, and equipment distribution and sales center. GRP Capital offers recourse and non-recourse loans through a variety of investors, including investment banks, domestic and foreign banks, credit companies, hedge funds, pension funds, and private lenders. Before we suggest a path for your debt financing, we seek to understand your financial landscape to offer the best solution for you and your future acquisition. We were pleased to provide this competitive loan for our client.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.

It is our goal at GRP Capital to provide client-oriented financial services through competitive commercial real estate loan solutions. Through a chain of banking and non-banking networks, we are able to provide our clients with funding solutions that serve the financial and business goals of lenders and investors alike. Here are some recent transactions that show our diverse offerings and experience.

Courtyard by Marriott – Jonesboro, AR

Our team is pleased to announce the closing of a Recourse Bridge Loan for a developer in Arkansas. GRP was able to facilitate a construction loan and also provide additional capital to complete the development of a 99-room Courtyard by Marriott in Jonesboro, AR. Through our GRP Capital Debt Fund of private lending solutions, we were able to provide a quick closing and new capital to allow the client to continue construction on schedule without any halts.

The client was exceptionally pleased with our customer service and our thorough knowledge of loan structuring and hotel development.

Super 8 – Naples, FL

Director of Operations, Krishan R. Patel, recently assisted on the refinance of a 100-room, 2-story exterior Super 8 in Naples, Florida. Having operated the property for nearly a decade, the client was pleased to replace his existing SBA 7a note with a fixed-rate Conventional Loan.

The client was impressed with our knowledge and connections to get the deal done.

Class B Multi-Family Apartment Condominium – Fort Myers, FL

This time last year, GRP Capital secured conventional financing for a client to acquire a Class B Multi-Family Apartment Condominium in Fort Myers, Florida. The client has since revamped the property and is reportedly beating revenue expectations. For this client and many others, our Small Business Financing services paired with our reliable relationships with financial institutions help them identify and close on the right loan for their needs.

Our focus is to develop innovative financing solutions for businesses through our service divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation

The end of the summer at GRP saw closings on significant loans, all of which illustrated the versatility of our GRP team, highlighting how our expertise secured funding for the capital needs of our valued clients. We are proud to highlight some of our team’s recent loan closings:

Quality Inn – Reidsville, NC

Relationships are critical to our success and we pride ourselves on knowing our clients well, including their goals for growth. In addition, we are aware of our financial partners and what types of business loans that regional and national lenders want to add to their portfolios. We are non-traditional matchmakers— matching the right loan to the right lender.

An example of a great match was the Quality Inn. GRP Capital Associate Shail Madhav secured acquisition financing for this 51-room property. What could have been a complicated loan (multiple investors, some of whom already had SBA loans) went smoothly to closing because of the way GRP packaged the loan and because of Shail’s ability to guide the clients in acquiring and providing the necessary paperwork.

We were pleased to supervise the entire process from loan application to closing.

“The clients were able to get a favorable interest rate and terms. They were ecstatic to hear that no additional monetary guaranty was needed from the group due to an appraisal rebuttal done by the GRP team, which saved them thousands of dollars.”

Days Inn & Suites – Gonzales, TX

Senior Associate Ryan Dumas showcased his knowledge of hotel management and secured funding for the Days Inn & Suites. This 41-room property was in distress and needed ownership that would live on-site in order to best take care of the property. Since the client was well acquainted with the area and operates another hotel nearby, he was the perfect buyer.

Properties that are underperforming are challenging to finance. First, GRP had to thoroughly assess the property assuring that it could stabilize within its submarket under changed management. Then GRP presented the story to our network. Because of our strong relationship with various institutions, we have built up trust and our underwriting partners are comfortable with our financial analyses of properties.

A reputable lender agreed with GRP’s assessment and funded this SBA-backed loan, creating a revenue stream for our client and stabilizing this hotel which in turn created stable work for its employees.

“The clients were happy with our services. We even involved the real estate broker to help solidify the deal.”

The Learning Experience – New Haven, CT

Sagar Patel, an Associate at GRP Capital, was pleased to assist a client in securing a modest SBA 7(a) loan to finance the start-up costs of a new daycare center. Due to the success of the client’s first location, the franchise offered territory rights to the franchisee. This closing was their first step at expansion. The terms of the Learning Experience franchise agreement had to be consistent with the SBA guidelines, so our GRP team had to carefully examine and suggest revisions on franchise agreements, operating agreements and key SBA documents in order to have the blessing of both the lender and the franchise.

GRP Capital is familiar with these types of strict guidelines when expanding a franchise and was able to meet the needs of both the client and the franchise.

“The clients were happy that we were able to get the financing accomplished for them. The franchise worked hand in hand with us to ensure the proper paperwork that was needed was done correctly in order to fund the deal.”

Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.

At GRP Capital, we get to know our clients. They are amazing people: hard-working, creative visionaries who have dreams that need financing.

During our time together, we get a solid sense of their abilities: their talents, their skills, their
financial stability and their capacity to grow and take on new challenges. We have to believe
in our clients, so that we can advocate for them in the marketplace.

Knowing the specific needs of our clients has allowed us to play a part as they set and
achieve entrepreneurial goals, transforming their visions into reality.

The Spring House at Cartersville – Cartersville, GA

We pride ourselves in our ability to spot skilled entrepreneurs whose dreams deserve support
and financing. Our borrowers in this project have had lengthy, successful experience in the
hospitality industry. They were ready to spread their wings and utilize their management
skills to branch out to the assisted living and memory care world.

The Spring House at Cartersville was created from an existing hotel property that was
transformed into an assisted living and memory care facility.

Just because we at GRP see the potential of our clients to be able to switch gears doesn’t
mean that every lender sees the same potential. In fact, this acquisition and conversion was
considered out-of-the-box by most traditional lenders, who can sometimes be risk-averse.
Our lender partners wanted to see experience in the specific senior care market prior to
extending any credit. As a result, we utilized our own GRP Capital Debt Fund, a perfect
resource for atypical loans.

Krishan Patel, GRP Capital Managing Director, worked closely with the clients and
counseled them to partner with an experienced management company as they went through
the construction and start-up phases of the business.

Amazingly, this loan closed within 30 days. The construction began immediately and the
clients are already investigating new conversions, now with experience under their belt,
which will enhance their stature for any future potential lenders.

“The clients felt that our services were very unique. GRP Capital conducted a tremendous amount of research. Additionally, GRP Capital created a financial model for the clients that would assist them in presenting their project and future projects. They will be able to see a broad scope of their investment analysis along with a ProForma Report and debt analysis.”

Quality Inn – Rome, GA

This small-business loan backed by the Small Business Administration is emblematic of the
level of services that GRP Capital provides. Lenders and borrowers are eager to obtain SBA
loans, as they offer more accessible funding for expansion.

That doesn’t mean that applying for SBA loans is always easy. SBA loans are accompanied
by a great deal of paperwork combined with a higher level of scrutiny of finances.

GRP Capital knows exactly what SBA documentation will be needed by our quick acting
PLP lenders. Our in-house underwriting process helps determine what issues we could face
further down the road, which could turn into potential roadblocks. We examine operating and
franchise agreements as well as financials to be sure they are not only accurate but also will
pass SBA guidelines.

We helped our clients acquire this Quality Inn through an SBA 7a loan, guiding the process
from financial analysis, through appraisal, underwriting, and closing. The process was quick
and the hotel is thriving, receiving excellent online reviews and meeting their occupancy
targets.

Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.

We are a leader in commercial lending, advising, and investing because we are experienced, connected, and invested. Contact us to start the conversation.

It’s your business and your dream.

Every dream deserves serious consideration and appropriate funding.

What’s on your wish list?

Big Dreams? 

• Do you have an amazing idea for a construction project?
• Are you in the market for the transformation of an existing structure into something newly profitable?
• Are you an experienced business owner with complicated financials, holding companies or multi-layered organizational structures? You have the equity for your new ideas, but you want us to take care of all the paperwork and processes. No problem. We’ve done that!

GRP is also offering HUD loans, Perfect for senior living housing. HUD loans offer competitive rates and excellent amortization. They are perfect for refinances or can be used for new loans, with accompanying bridge loans if necessary for the somewhat longer approval process.

Smaller Wishes?

• Want to take advantage of lower interest rates to refinance existing loans, thereby improving your cash flow?
• Are you looking at upgrading or reflagging an already profitable business to improve profitability, cash flow or to better position your business in the existing market?
• Is there a renovation project that would meet customer demands and or allow you to increase revenue? Examples would be food service areas, gift shops, fitness clubs or even rental space.

Sometimes, small steps can drastically improve cash flow, which just makes life easier, reducing stress and giving you a little breathing room when dealing with the vagaries of the business cycle.

Don’t just daydream. Take the steps to make your ideas into reality by consulting with our team today.

Our client, the CEO of a corporation that owns the Days Inn – Fort Myers, wanted to refinance the existing loan at his healthy property in order to improve his cash flow. We sourced advantageous conventional financing for him, which offered competitive rates, allowing him to consolidate debt while also lowering his monthly mortgage. Win, win!