New owners purchase iconic Russian River resort for $2.5 million with SBA 504 loan
San Francisco, CA, June 3, 2015 (Newswire.com) - TMC Financing today announced new owners used a 20-year, fixed-rate U.S. Small Business Administration 504 loan to purchase the iconic Russian River landmark Johnson’s Beach Resort in Guerneville, California for $2.5 million. Nick Moore and Dan Poirier are only the fourth family in nearly 100 years to own the campground and recreational property.
“The most appealing thing about the SBA loan was the fixed rate,” Poirier said. “We both have a background in financial services and we can’t imagine rates will stay this low forever. Locking down the rate for 20 years was something we couldn’t pass up.”
Moore says the property is the anchor tenant of a robust revitalization underway in the Guerneville. “We’re like Macy’s,” he said. “We have 11 acres and 800 feet of beach frontage right in the middle of downtown. People have been coming here for years, so we’ll change as little as possible in terms of community access and focus on upgrades that will make it easier for people.”
Already Moore and Poirier have created a website that allows for online reservations and are set up to accept payment by credit card. They plan to make small cosmetic enhancements and begin to offer branded merchandise as they head into their first summer season. “We’re the hosts for the Vineman triathalon and the Russian River Jazz & Blues Festival and hope to add more events as we go forward,” Moore said. “We think Guerneville is poised to have one of its biggest summers ever.”
“The SBA financing was one of the fastest parts of the process,” Poirier said. “It was easier to do this SBA loan than to refinance our VW or open a Comcast account. To me, TMC was the ideal financing partner.”
“Johnson’s Beach Resort is a unique property, which made this project a perfect fit for the SBA 504 program,” said David Griffis, TMC Financing senior vice president. “I think Nick and Dan will be great stewards of the property and the business, and will add to the Johnson’s Beach legacy.”
About SBA 504 real estate loans
The Small Business Administration 504 loan program allows small-business owners to finance commercial real estate and other fixed assets with long-term, below-market, fixed interest rates. SBA 504 loans can be used to finance the total project cost (TPC), which can include the purchase price, construction/renovations, equipment, soft costs and closing costs. A typical 504 loan project requires a down payment of only 10 percent of the TPC from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender and a second mortgage provided by a certified development company (CDC). By enabling owners to keep their capital working to grow the business and create jobs, the 504 program provides long-term stability to both businesses and communities. Business owners can confirm they meet the qualifications for an SBA 504 loan by visiting the TMC Financing website.
About TMC Financing
Founded in 1981, TMC Financing is the largest provider of SBA 504 real estate financing in Northern California and Nevada. TMC consistently ranks among the top CDCs nationwide, funding projects worth more than $8 billion across California and Nevada. More than 4,700 businesses have benefited from this financing, resulting in the creation of an estimated 46,000 jobs. For more information on SBA 504 loans and the local businesses they support, visit tmcfinancing.com.