TMC Financing’s SBA 504 refinance loan cuts hotel occupancy costs and helps them survive the coronavirus pandemic
TMC helped me set up a loan program that dramatically reduced my monthly mortgage payments. My initial payment was almost $ 8,600 per month, now my payments have dropped to $ 5,700 at the door … I could breathe again.
OAKLAND, Calif. (PRWEB)
September 22, 2020
Muhammad Mushtaq Khattak is the owner of Auberge des Bois Sauvages, a hotel located in a quaint resort village in Twain Harte, California. Before the statewide shutdown, this charming hotel offered the perfect stay for tourists and business travelers who wanted to be surrounded by the tranquility of nature, savor fine country cuisine and visit the famous national park. of Yosemite.
Khattak and his family acquired Wildwood Inn in 2017, however, their journey to hotel ownership has been fraught with financial challenges. As a Pakistani immigrant, Khattak had a limited credit history and struggled to obtain low-cost mortgage finance.
Khattak was forced to settle for a conventional home loan with an incredible 11% interest rate. Fortunately, in 2019, Khattak partnered with TMC financing and took advantage of the SBA 504 refinancing program. The SBA 504 refinance loan not only reduced Khattak’s occupancy costs by approximately $ 3,000 per month, but proved to be a vital tool against the financial impact of the coronavirus pandemic.
Why Muhammad Khattak Chose the SBA 504 Refinance Program
The SBA 504 refinancing program allowed Khattak and his family to refinance their conventional high interest loan with a more affordable and beneficial SBA 504 loan.
“When I moved from Pakistan to America, I struggled to find a suitable business for my family,” Khattak explained. “Then we found Wildwood – I knew it would be a good choice. It was in the center of a beautiful place with a classic alpine structure. I decided that the hospitality industry would be the industry that could meet the standards I wanted for my life.
“The problem was, I didn’t have the source of income to qualify for a conventional loan at a reasonable interest rate. A high interest hard money loan was my only option, so I kept my head down and accepted this loan for two years. Once my credit history improved and my business made progress, I began to look for another source of funding. It was then that I discovered TMC Financing’s SBA 504 refinance program.
“TMC helped me set up a loan program that dramatically reduced my monthly mortgage payments,” Khattak continued. “My initial payment was almost $ 8,600 per month, now my payments have increased to $ 5,700 upon release. This change allowed me to keep some precious working capital, my shoulders relaxed and I was able to breathe again.
Anna o’brien, the senior vice president of TMC Financing who facilitated the project, explains: “The 504 program is specifically designed to help small business owners obtain real estate financing with fixed below-market interest rates. Muhammad’s 11% interest rate was unsustainable in the long run. By using the SBA 504 refinance program, Khattak now has a below market rate which is fixed for 25 years.
“My wife and I are now joking about our SBA 504 loan process,” Khattak explains. “We were approved quite unexpectedly, so my wife had to leave a family reunion and come back from Pakistan to sign papers – she is petrified of flying. It was two very exhausting days of travel for both of us, but we got the job done. The urgent effort was well worth it, as this 504 loan also helped Wildwood weather the financial impact of the pandemic. ”
SBA 504 refinance loan helped Wildwood Inn stay afloat in 2020
Khattak’s SBA 504 refinance loan was approved in January 2020 and according to Khattak this would be one of the reasons his hotel business would stay afloat throughout the current COVID-19 crisis.
“Wildwood Inn had to close completely for 3 months from March of this year,” Khattak explained. “All of our European customers have canceled their vacation bookings due to travel restrictions. My business was in trouble. I took out a PPP loan and a disaster loan – but it was not enough. It was truly a scary time.
“We then received news that the SBA would give 6 months debt relief on our 504 loan. I was extremely grateful. We reallocated these funds to where they were needed most – it helped my business to survive. Imagine if my wife and I weren’t traveling to complete the required paperwork, we would still be paying that outrageous monthly payment while trying to limit the financial impact of this pandemic. ”
“With the disaster loans, my personal cash reserves, and the SBA 504 refinance loan, I think Wildwood Inn will survive and make up for most of the financial losses by next year. I am so grateful that I decided to work with TMC, their professionalism and expertise helped guide me in a direction that unknowingly helped save my business.
To book a stay at the Wildwood Inn, please visit http://www.wildwoodinn.com or call 209.586.2900
Learn more about TMC financing
Founded in 1981, TMC Financing is the premier national provider of SBA 504 financing, which enables small business owners to finance orrefinancecommercial real estate and other fixed assets with long-term fixed interest rates below the market. SBA 504 loans can be used to finance the full cost of the project, which may include the purchase price, construction / renovations, equipment, incidentals, and closing costs.
TMC Financing has secured financing for projects worth more than $ 12 billion in California and Nevada. More than 5,000 businesses have benefited from this funding, resulting in the creation of around 60,000 jobs.
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