GRP Capital is pleased to close another hotel refinance loan.
Our Southern California clients faced serious challenges during the beginning of the COVID-19 pandemic. Their hotel is located very close to Coachella. As a result, the cancellation of the famous festival in the early days of the pandemic could have been devastating. But our clients worked hard and kept their operating costs down. They continued to market their hotel carefully and when travel restrictions eased, were back in business.
Smart management eventually paid off. They also took advantage of the Small Business Administration stimulus package. Specifically, they obtained a modest EIDL (Economic Injury Disaster Loan) and two small rounds of Paycheck Protection Program loans. They used the proceeds from the loans appropriately, keeping their debt manageable. Their sound practices demonstrated that they were appropriate for a new refinance.
New refinance requirements when you have SBA COVID-19 loans:
• Subordinate the EIDL: At times, a lender will request a subordination. This means that the client gives permission to pay their new loan first and the EIDL loan moves into second position. GRP Capital works with lenders who understand how to subordinate the loans, making the process seamless for our clients.
• Apply for forgiveness of PPP loans: If PPP loans have been used appropriately (for payroll, mortgage and other pre-approved costs), borrowers can have the loan amounts forgiven. This process originates with the lender.
After working together as a team with Business Associate Vijal Suthar, our clients now have a reasonable mortgage payment that makes their cash flow even stronger. They are renting rooms and eagerly awaiting the return of Coachella. Vijal Suthar said that “closing this refinance was a signal that lenders want to loan money. In particular, lenders prefer strong borrowers who show savvy business sense and strong management skills. These clients did the right things to keep their hotel afloat. I was very pleased that their reward was a very competitive and affordable loan.”
Are You Ready for a New Purchase or Refinance Loan?
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. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.