TMC Financing has announced that the Comfort Suites San Jose Airport hotel was acquired with a 20-year fixed-rate, SBA 504 loan for $6.6 million. The hotel is now family owned by Jashvant and Hasaben Patel.
“By partnering with TMC, the new owners have been able to open their fourth hotel franchise with another SBA loan,” said Barbara Morrison, president and CEO at TMC Financing. “Some business owners may not realize there’s no limit on the number of SBA 504 loans one borrower can hold. This is another attractive aspect of the SBA 504 program. In recent years the SBA 504 program has expanded to allow larger loan sizes for growing businesses.”
Bruce Whitaker, SVP, business development, TMC Financing, worked with the Comfort Suites franchise owners to provide financing through the SBA 504 commercial real estate loan program. The lender on the project was Redwood Credit Union in San Francisco, and the hospitality management firm that facilitated the transaction was Neville Parujanwala of Hospitality Funding, based in Fremont.
SBA 504 financing 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 February SBA 504 interest rate is 5.30% 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).