Tag Archives: SBA hotel loan

New Mexico Native American art

New Mexico Hotel Refi Offers Low Rates

GRP Capital New Mexico hotel owners secured financing that offered market-best low rates.

Ryan Dumas and the GRP Capital team worked very diligently with this client group. The partners really had one overarching goal: securing lower rates. Their current note had a high interest rate. Therefore, their new loan needed to show significant savings. An SBA 504 loan was the best choice for them. It offered stable, low rates. More importantly, the SBA guarantee made the loan more attractive to lenders.

Senior Associate Ryan Dumas reflected on the path to get the loan closed. “Our clients are experienced in this marketplace. However, New Mexico is a smaller market. We needed the SBA to help support this loan in order to entice a lender. I was thrilled that this new loan is a full 3 points lower than the clients’ previous mortgage. They will be saving serious money, which they can use personally or professionally. They will continue to be a significant employer and business in their small town.”

Using an SBA 504 to Access Low Rates

  • GRP Capital has connections with multiple CDC’s across the nation and the lenders who are interested in 504 loans.
  • The 504 program requires utilizing a Certified Development Company (CDC). The CDC is SBA’s community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA.
  • The SBA 504 structure guarantees loans, so that lenders face lower risks.
  • We are very careful to ensure sufficient SBA eligibility prior to choosing a loan vehicle. If you have any questions about what this means, please contact us.
  • In many marketplaces, the SBA guaranteed loans are competitive with conventional loans.
  • SBA loans may often be the best bet for achieving lower interest rates.

Contact Ryan if you are considering SBA funding, 504 Loans, Green Loans or any other loan products.

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, 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.

Third Beach Hotel Buy

Ryan Dumas and the GRP Capital team are very happy to have closed another Carolina beach hotel loan. Our clients decided to embark on an SBA 504 loan, utilizing the Green program. They will be adding solar panels to their hotel, reducing electric consumption and bills.

Senior Associate Ryan Dumas and our entire team collaborated with our very motivated clients to get this somewhat complex loan closed.

Ryan, who has now closed three loans with this client, stated:

I really value this client group and was so happy that they came to me for a third time to find financing. The lead borrower has a lot of knowledge about this resort community. Of course, he is an excellent hotelier. It was critical to place this loan with the SBA 504 Green Program. When you use the Green program, it preserves eligibility. Since the partners have other SBA loans, they didn’t max out with this loan. And now they are installing solar panels, which are ideal for sunny climates. Even more importantly, this kept the loan affordable, as the partners have other future business deals in mind.

Advantages of the Green Program for a Beach Hotel

  • There are certain limits to an SBA 504 loan. However, utilizing a Green Loan does not “count against” your eligibility.
  • Green Loans can be used to reduce energy costs and to utilize renewable energy. A sunny and/or windy location near a beach is perfectly situated.
  • We are very careful to ensure sufficient SBA eligibility prior to choosing a loan vehicle. If you have any questions about what this means, please contact us.
  • The 504 program requires utilizing a Certified Development Company (CDC). The CDC is SBA’s community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA.
  • GRP Capital has connections with multiple CDC’s across the nation and the lenders who are interested in 504 loans.

Contact our team if you are considering SBA funding, 504 Loans, Green Loans or any other loan products. We can help you determine the right mix of loan types for all of your business financing needs.

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, 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.

Partner Group Buys New York Hotel

The New York hotel marketplace can be complex. Real estate taxes and procedures can be complicated with commercial real estate deals. But our clients were ready to purchase a New York hotel. They perceived that the state has largely bounced back from COVID, especially upstate.

Working closely with our entire team, they purchased the hotel and are ready to take advantage of summer high season. Our clients selected SBA financing for their loan. As a result, our team needed to be nimble, especially with changes in the SBA administration. Everybody was particularly mindful of the rules for SBA eligibility.

Senior Associate Ryan Dumas was excited to close this loan. He remarked:

My clients were ready to purchase this upstate New York hotel and have a good handle on this specific market. An SBA loan was the best loan vehicle for them. However, we were all aware of changes in the SBA. We had to make changes to the loan details a couple of times, but I was thrilled to get this across the finish line. I know my clients will own and manage this property in ways that maximize revenue, while keeping an eye on expenses.

Is an SBA Loan in Your Future?

  • The Small Business Association (SBA) has multiple loan programs and guarantees. They each have their own eligibility standards.
  • SBA loans may be the best choice for certain markets and for certain types of hospitality properties, especially hotels with external corridors.
  • Because of changes to SBA staffing and increased scrutiny of non citizen partners, borrowers should be aware that the SBA approval can take three to four weeks, in addition to lender underwriting and approval. (These can happen simultaneously.)
  • SBA also limits the amount of SBA debt each guarantor can have. This debt load does not include prior EIDL’s (Economic Injury Disaster Loans).

Contact our team if you are considering SBA funding or any other loan products. We can help you determine the right mix of loan types for all of your business financing needs.

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, 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.