TMC Financing Helped the Owners of TownePlace Suites Natomas Navigate Challenging Environment to Finance New, 119-room Hotel Near Sacramento International Airport

OAKLAND, CA (October 6, 2021) – TMC Financing (TMC), one of the nation’s top lenders of SBA 504 commercial real estate loans for nearly 40 years, provided Hospitality Natomas, LLC, with $22 million in SBA 504 financing to build the 119-room TownePlace Suites by Marriott Sacramento Airport Natomas in the Natomas community of Sacramento, CA. The hotel is conveniently located near two major freeways and in the vicinity of Discovery Park, the Sacramento Zoo, the Golden 1 Center, and downtown Sacramento. The Natomas area is experiencing significant growth after a construction moratorium was lifted following vital repairs to the levee system stemming from concerns about levee failures after Hurricane Katrina.  

Financing for the hotel industry is tricky, but financing for TownePlace Suites by Marriott Sacramento was a “doozy” according to Bruce Whitaker, Senior Vice President, TMC Financing. 

“The project took us five years to get off the ground,” said Cosme Fagundo, Co-owner, TownePlace Natomas. “Every single thing that could go wrong went wrong. We had entitlement issues. We had map recording issues. It was a comedy of errors with situations that were not be under our control, and then we opened up in the middle of an absolute nightmare with the pandemic!” 

“There were a lot of headwinds during financing, but TMC and Bruce helped us navigate those waters,” he said. “It’s like having a harbormaster—they send out a pilot boat and guide you into the harbor. That’s how I would describe TMC. They really helped guide without hitting any rocks or having any issues.” 

SBA 504 loans enable business owners to buy commercial real estate and other fixed assets at below-market, long-term, fixed interest rates. Down payments as low as 10% mean businesses can keep their cash working in the business instead of being locked up in a high down payment.  

“With the 504 program you have to put less equity down, because most commercial banks want to have a fair amount of cushioning,” said Fagundo. “I would not have been able to do this if it weren’t for the 504 program.”  

The TownePlace Natomas $22 million SBA 504 loan included $5.5 million for onsite energy production as part of the SBA’s energy efficiency financing program, which allows businesses to qualify for additional SBA 504 financing when they meet energy efficiency requirements. Under the program, the SBA 504 portion of the financing package is increased to a maximum of $5.5 million. There is no limit on the first mortgage amount, so there is no limit on the total project cost. TownePlace Natomas met the requirement by installing solar panels on the project.  

“The energy efficiency loan waives requirements so you can access multiple SBA loans,” said Fagundo. “That’s why hospitality has gravitated toward the 504s, because you may have a lot on your balance sheet, but you don’t have a lot of cash, right, for a smaller operator.” 

Fagundo and another co-owner, Michelle Della Penna, said they appreciate the 504 program’s positive impact on minority business owners.  

“SBA 504 enables a lot of upward mobility, especially among minorities,” said Fagundo. “I’m a first-generation Cuban. My parents worked very hard, so I got a good head start, but I would not have been able to do this project if it weren’t for the 504 program.” 

“My dad came here from Argentina when he was in his 20s, and he really worked hard and was able to kind of provide these legacy properties and assets,” said Della Penna. “It is exciting to watch something that you have built from the ground up. It has been a really good experience.” 

“It was a privilege to help Cosme, Michelle, and Alicia access the capital they needed to build TownePlace Natomas and to obtain additional 504 funds based on their commitment to energy efficiency,” said Whitaker. “At TMC, we’re driven to make the process better for our customers—even when we’re in the middle of a global pandemic! We wish TownePlace Natomas the best of luck.” 

Celebrating 40 Years in Business! TMC Financing is a non-profit 501(c)4 with a mission to promote economic development and job creation for small businesses in California, Nevada, and Arizona. Since its founding in 1981, TMC has secured more than $10 billion in SBA 504 commercial real estate financing for 6,000 small businesses. As a result of the financing, these small businesses have created over 60,000 jobs. Business owners in Arizona, California, or Nevada can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website at