This was a purchase for some past clients with whom we had just recently financed a Ramada in National city via SBA 504 program. This Property known as Ramada Bakersfield came to their attention and they couldn't pass on the opportunity so they contacted us to see what we could arrange and with minimum down payment.
Wow, where do we begin! The biggest hurdle was the COVID Pandemic which was causing major strains for the Hospitality industry. We also needed to finance this under an SBA 504 Program and at 90% LTV. The clients just completed an acquisition earlier this year using the SBA 504 program, but we were able to get approval for another SBA loan by submitting to SBA using their Green Up Program, whereby the new hotel being purchased qualified for energy savings by installing solar panels. Then we had SBA which was so back logged due to them handling all of the applicants who had applied for the PPP program. Coincidentally the least of the challenges was the actual asset, it was performing remarkably well considering the overall economic climate.
We put heads down to the grind stone and got ready to weather the storm. The transaction took time and required an extension to COE, but everyone worked together. This was all about team work, cooperation, understanding, and everyone remaining focused on the same goal. We got the loan funded and closed and everyone walked away happy. Now off to the next assignment.