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Scientific Capital Arranges the Refinance of Comfort Suites, California
Scientific Capital refinances the first trust deed of an existing SBA 504 loan of the Comfort Suites in Salinas, CA
A difficulty in placing this type of loan is that it is not having interested buyers in the secondary market and so most lenders, knowing they have to keep this type of loan on the books, avoid it and gravitate towards SBA 7a.
Another fluid factor in refinancing of 504 loans is that the SBA has to subordinate to the new lender and so a subordination application is placed with the SBA CDC that originally processed the SBA 2nd loan. In states where the SBA has faced many hotel loan defaults and foreclosures, if there is an increase in the loan amount, the SBA may not be willing to offer subordination.
Scientific Capital had refinanced this hotel for the previous owner in 2006 and then for the acquisition of it by the new owners in 2008 attesting our client focused rather than transaction focused business model.
Scientific Capital Group, Inc. (www.scicap.com)