Multiple SBA 504 hotel loans make second-generation ownership possible
Carmel Village Inn is purchased with a $7.4 million SBA 504 hotel loan
TMC Financing today announced that Carmel Village Inn has been purchased with a 20-year fixed-rate, SBA 504 loan for $7.4 million. The limited service hotel located in the town of Carmel-by-the-Sea offers 34 guest rooms in the 11,527 square foot building on Juniper Street at Ocean Avenue. The financing provides the current owner and operator, Samit Patel, long-term stability while retaining working capital through a down-payment of only 15%.
Kurt Chambliss, Senior Vice President of Business Development at TMC Financing, worked with the owner, Samit Patel, of Carmel Village Inn, to provide financing through the SBA 504 commercial real estate loan program. Samit’s father, Shashikant Patel, has worked closely with Kurt and TMC Financing to finance three hotel properties in the recent past. The lender on the Carmel Village Inn project was Fremont Bank in Fremont, CA.
“The SBA 504 program is a fantastic opportunity for business owners to access capital that supports the growth of a company,” said Shashikant Patel. “This is my fourth experience working with TMC Financing and their business development officer, Kurt Chambliss. We have recommended TMC and the SBA 504 program to many of our hotel industry colleagues. TMC works seamlessly with any bank and broker, facilitating the process between all parties.”
“By partnering with TMC, a second generation hotel owner has successfully purchased his first property with an SBA 504 loan,” said Barbara Morrison, President and CEO at TMC Financing. “Through the SBA 504 program, ownership of the facility provides savings to businesses with much needed working capital, which can be used to reinvest and grow the company and allow for future expansion. The Patel’s understand these savings, which is why they continue to use the SBA 504 program, growing their businesses successfully over the years.”
The Carmel Village Inn has been owned and operated by Samit Patel since 2011. While this is the first hotel Samit has owned and operated, he has long been a part of the hotel business. For 10 years, Samit helped his father operate multiple hotels in Monterey. When Samit took ownership of the Carmel Village Inn, he began immediate improvements with the hope of soon being able to own the building.
About the SBA 504 Program
The SBA 504 Program offers businesses below-market, fixed rate financing for the acquisition, renovation or construction of commercial real estate. SBA 504 loans provide long-term stability for businesses with the ability to retain working capital which can be used to further grow the business and create new jobs. The March SBA 504 interest rate is 5.28% fully fixed for 20 years. The typical loan structure for an SBA 504 loan comes from a first mortgage with a conventional lender and a second mortgage from a certified development company (CDC).
TMC Financing provides Small Business Administration (SBA) 504 real estate financing and is the leading Certified Development Company (CDC) in Northern California and Southern Nevada. In the past 30 years, TMC has provided over $7.5 billion in SBA 504 financing for more than 4,500 businesses. This financing has resulted in the creation of over 33,000 jobs. TMC has been ranked in the top five Certified Development Companies nationwide for over a decade.