TMC Financing Helps Hoteliers Secure $2.16M through SBA 504 Program
While access to hotel financing has increased since the pandemic, finding the right lender can be difficult. This was the challenge faced by business partners Josh Boone and Tim Glover, who recently purchased Bandon Marina Inn, a beautiful 3,950-square-foot boutique hotel located on the Oregon coastline for $2.16 million.
When Boone and Glover initially explored financing options, the process was slow and arduous. Local lenders made offers, but none fell within their budget. Fortunately, they discovered TMC Financing’s SBA 504 commercial real estate loan.
The Small Business Administration’s (SBA) 504 Program offers below-market, long-term, fixed-rate financing, to purchase, construct, or refinance hotels with a downpayment as low as 15%.
“We were midway through our original financing package when we learned about the terms of the SBA 504 loan,” explained Boone. “When we discovered that we only had to put 15% down, instead of the expected 25%, we happily switched to TMC Financing.”
With the money they saved, Boone and Glover were able to hire additional staff and prepare the Inn to ensure their guests would enjoy their stay.
Bryce Fennell, who administered the SBA 504 loan on behalf of TMC Financing explains that the SBA 504 loan is the most advantageous financing option for hoteliers.
“Conventional hotel lenders often require a high down payment,” explained Fennell. “However, the unique structure of the SBA 504 loan allows for a lower down payment and can even help finance hotel construction and renovation costs. The best part is, both franchised and independent hotels qualify for the program.”
Josh Boone and Tim Glover are incredibly thankful that they were able to take advantage of the SBA 504 Program.
“We wasted a lot of time talking with the wrong banks because we were unfamiliar with the SBA 504 option. I’m glad we made the switch to TMC because purchasing real estate is a big step, a step we wanted to take to create a better tomorrow for our families. TMC and the SBA believed in what we were doing, and it really helped us paint a long-term picture for success.”