TMC Financing provides unlimited funding through SBA 504 energy-efficiency program
TMC Financing today announced Shailendra “Sam” Devdhara financed the purchase of the 69-room Quality Inn & Suites Silicon Valley Santa Clara at 2930 El Camino Real in Santa Clara California with a 20-year fixed-rate U.S. Small Business Administration 504 loan. The total project cost is more than $9 million.
This is the third hotel property Devdhara has financed with TMC in the Bay Area. He purchased the 25-room Travelodge at Fisherman’s Wharf in San Francisco in 2012 and the 37-room Quality Inn & Suites Livermore in 2013.
“TMC makes things easier” Devdhara who bought his first Bay Area hotel in 1997 said. “It’s always a seamless transaction and that helps.”
Devdhara was able to qualify for multiple SBA loans by installing solar panels at both Quality Inn properties under an SBA program requiring a 10 percent reduction in energy consumption. “Not only do the solar panels save energy” Devdhara said “but they help in marketing the hotels. Guests like the idea of going green.”
“Sam is known for taking hotels that have perhaps seen better days and adding value” Bruce Whitaker TMC senior vice president said. “He does an upgrade and adds the little amenities that value-conscious travelers and families appreciate.”
Whitaker said recent changes in regulatory requirements allow hoteliers to finance multiple properties through the SBA when energy efficiencies are met. “That can really make a 504 loan attractive for hospitality owners” he said. “Unlike a 7(a) loan the 504 program doesn’t have a maximum loan amount. At TMC we’ve financed projects in excess of $25 million in total costs.”
Devdhara is active in local and state lodging associations serving on the board of the Asian-American Hospitality Owners Association (AAHOA) for six years as North Pacific regional director and director-at-large. “Because the SBA 504 program is available independent hotel owners can get into the business with a smaller outlay of capital” he said. “That allows us to make improvements on older properties and upgrade a community’s accommodation offerings.”