Tag Archives: SBA hotel financing

Santa Rosa New Mexico downtown

New Mexico Return Clients Close Loan

Our GRP Capital Team has closed a fourth hotel loan for a treasured group of return clients.

These return clients were ready to purchase another New Mexico hotel. They had tried to source financing on their own, but came to us when they were dissatisfied with the results. Our team was able to work with a Community Development Corporation (CDC). This CDC was crucial in obtaining an SBA 504 loan. The terms of the loan were better than the terms from the various banks that the different partners had been trying to obtain in the marketplace.

GRP Capital Managing Director Krishan Patel led the team in sourcing and closing the loan. Our work benefited the borrowing group, whom we know well. This borrowing group had many partners, so sometimes that creates a cumbersome document collection process. GRP Capital’s involvement definitely saved the clients time and money. In addition, the team was able to step in to make last minute plans when one of the partners had to leave the country unexpectedly and needed to sign early and remotely.

Benefits to Return Clients:

• We Know You: Return clients’ files are archived in our systems. We know about your other businesses and retain documents that can be provided for new lenders, if appropriate.

•You Know Us: We think we are pretty easy to get to know. However, we recognize that clients have to learn who we are and the GRP Capital Way. The learning curve is very smooth and future transactions are even smoother.

• We Know Which Lenders Will Appreciate Your Business Vision: When we’ve already closed a loan for you, we have also learned about you and your businesses. We know what aspects of your business need explaining and we also know about the strengths of the owners and managers. With this knowledge in our back pocket, it is easier for us to source appropriate lenders, who will want to loan money to our return clients.

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 or engage in construction, 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.

Helen Georgia hiking trail mountains

New Georgia Hotel Loan

Senior Associate Ryan Dumas has helped his client close a Georgia hotel loan, using the SBA 7a program. The loan has fixed rates, which were very competitive in today’s marketplace.

Our Georgia hotel client was ready to take on a new business. To be sure, she has a great deal of experience in hospitality ownership and management. Therefore, this Georgia hotel loan was important to her and her family.

Ryan and our in-house underwriting and credit analysis team recommended an SBA 7a loan for a number of reasons. Firstly, the loan fit many of the 7a parameters. In addition, lenders are more willing to make hospitality loans when they come with an SBA guaranty.

Ryan was very pleased with the process. He stated, “We really are the leaders in the marketplace in closing SBA 7a loans. Our GRP team knows which lenders are interested in lending for hotels (not all banks are). This saves our clients a lot of time, not to mention money. I’m pleased to be part of the solution for these wonderful clients.” As for our client, she is busy working on improving the operations of her new hotel and said in an email, “Thank you for all your help obtaining the property. You were all great!”

Basic SBA 7a Information:

• What can a SBA 7a Loan used for? Limited to $5,000,000, borrowers can use this type of loan for purchases of businesses including equipment, renovation/construction and refinancing, too. Borrowers can even take out an SBA 7a loan for changes of ownership.

•How does an SBA 7a differ from an SBA 504? In order to apply for an SBA 504 loan, borrowers must work with both a CDC (Community Development Corporation) and a senior lender. The CDC has to officially submit the loan to the SBA for approval. In addition, the CDC also approves the lender. Typically the CDC and the lender each have their own underwriting processes, which happen simultaneously. These extra steps typically lead to a lengthier closing. GRP Capital advises 504 loans when borrowers have sufficient time in their purchase sale agreement and for larger loans, too.

• Why do lenders like SBA loans? It’s all about risk! Lenders are by nature risk-averse. The SBA guarantees the majority of the SBA loan, which removes a great deal of the risk from the lender. So it’s a win-win for them. They get to have a loan on their books without the full amount of the risk they incur with conventional loans. GRP Capital is continuing to dialogue with our network of lenders. We think it’s important that lenders understand the many stable, profitable hospitality businesses that are out there.

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 or engage in construction, 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.