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Embarking on the journey of constructing a boutique motel in Northern California? Financing is a critical piece of the puzzle, and in this post, we explore the potential of leveraging SBA 7A financing and incorporating C-PACE into your capital stack.
Understanding C-PACE in the Capital Stack
Beau confirms the viability of using C-PACE (Commercial Property Assessed Clean Energy) in the capital stack. Unlike traditional mortgage loans, C-PACE functions more like a tax lien or assessment. While lenders historically hesitated to engage with C-PACE, the tide is turning as these loans are perceived to be superior to conventional bank loans.
SBA 7A Financing and C-PACE Collaboration
The synergy between SBA 7A financing and C-PACE becomes evident in Beau's insights. He affirms that SBA 7A can seamlessly work in conjunction with C-PACE in the capital stack. While the closure of 504 loans is not explicitly mentioned, Beau notes the successful closure of numerous SBA 7A deals in combination with C-PACE.
Feasibility Criteria for Success
Success in obtaining financing through SBA 7A and C-PACE hinges on a crucial factor: global cash flow. Beau underscores the importance of a robust global cash flow that can effectively service the debt. The feasibility of securing this unique financing structure is high when the escrow of the project or the overall global cash flow aligns favorably.
Booking a Consultation for Tailored Guidance
Understanding the intricacies of structuring an SBA 7A loan with C-PACE demands a nuanced approach. Beau encourages those with questions or those looking to explore this financing option to book a consultation. He acknowledges the depth of these discussions, emphasizing the importance of finding the right bank with the expertise to handle such deals. Not every bank possesses the skill sets required for this unique financing combination, but the trend is shifting in favor of these innovative solutions.
Explore Your Financing Options Today
In conclusion, if you're navigating the complexities of financing for your boutique motel project in Northern California, SBA 7A and C-PACE could be the dynamic duo you need. Beau's extensive experience in the field, coupled with a willingness to guide through various financing options, positions him as a valuable ally in your entrepreneurial journey.
Whether you're a startup, acquiring an existing business, buying a franchise, or expanding your current venture, Beau offers tailored solutions. Ready to delve into the world of SBA financing or explore the possibilities of integrating C-PACE into your capital stack? Book a call with Beau, and take the next step toward turning your boutique motel dream into reality.
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