“The SBA 504 loan program is outstanding for hotel properties,” says James Woo, co-owner of WS Management, who recently closed his third hotel acquisition with TMC Financing. “The key is to work with an SBA lender that understands the hotel field. That’s why I keep returning to TMC Financing.”
Here’s how TMC helped James and his brother and co-owner of WS Management, Sean Woo, secure financing to acquire a Residence Inn by Marriott in Rancho Cordova, CA – and the difference that TMC’s experience has made in supporting their growth goals.
It takes experience to build a portfolio of properties
“When we were exploring financing for our first hotel acquisition with the SBA 504 loan program,” James explains, “we started working with a different certified development company.” Certified development companies, or CDCs, work in conjunction with banks to provide funding for small businesses, including administering SBA 504 loans.
“We found that not all CDCs have the experience and knowledge that’s needed for hotel deals,” James says. “For these, timelines and deadlines are important. TMC understands this and helped navigate us through a transaction that nearly fell through.”
TMC’s experience is the key for SBA 504 loans
James learned about TMC from Business Development Officer Jim Azevedo – they had met many years ago through a bank recommendation when James was running into issues with another deal. Jim helped him then and they’ve worked together several times since.
The bank that partnered on the recent purchase, Oak Valley Community Bank, also partnered with WS Management and TMC on the previous deals.
“The bank, TMC, and Jim Azevedo have been terrific,” James says. “For deals that require approval from the SBA, it’s essential to get the information and documentation right from the start. Jim knows what needs to be done to close these deals and he and the TMC team do the work to cross the finish line, on time, which is great. And when big deals run into challenges, which they almost inevitably do, TMC helps with those, too.”
Since TMC started working with WS Management, three deals have closed, bringing the WS Management portfolio to eleven hotels, with more in the works. That comes to hundreds of jobs – the most recent deal included continued employment for about 25 existing staff members – and measurable positive impact in their communities.
“Every deal is different,” says Jim Azevedo, “so even though the WS Management team has been through several SBA 504 loan processes, there are always going to be challenges that have to be overcome. We have the know-how to keep deals moving forward and to meet deadlines so that business owners can get back to focusing on growth. It’s been a pleasure helping James and the WS Management team achieve their goals so far and we look forward to working together again.”
Financing that fits, experience that matters
“TMC has a robust and experienced team that can handle hotel deals,” James says. “ If we decide to move forward with an SBA 504 loan, we look at TMC first. The SBA 504 is a great loan program and TMC is the team to get them done.”
TMC Financing is here for hospitality entrepreneurs and those in nearly every other industry that want to purchase commercial properties for their businesses. If that sounds like you, or if you simply want to explore your options, we can help you, too.
About TMC Financing
If your business is located in TMC’s service area of California, Arizona, Nevada, Hawaii, and Oregon, contact us to get started. If your business is located outside of our service area, try the SBA’s Lender Match tool to find a qualified certified development company (CDC) lending partner near you.