REHOBOTH BEACH, Del. — Senator Coons joined regional representatives from the Small Business Administration (SBA), and members of the Delaware business community on Tuesday in congratulating Admiral Hotel owners Chad and Elyse Moore for running the first business in Delaware to be approved for a SBA commercial refinancing loan. Senator Coons was joined by State Senator George Bunting, Mayor Sam Cooper, and Delaware Community Development Corporation’s Bill Aberna.
The hotel, which is located right off the beach in Rehoboth Beach and employs about 25 people, had a near-record year last summer, but still had a hard time getting a loan from any banks, so they turned to the SBA and Fulton Bank for help.
The 504 SBA commercial mortgage refinance loan came out of the American Jobs Act of 2010 and permits small businesses to lock in long-term, stable financing and improve cash flow.
The Moores will use the loan from Fulton bank, backed by the SBA, to refinance the hotel’s existing mortgage into a 20-year fixed rate, as well as make necessary renovations, including the construction of a café on the premise, which will create 10 new jobs.
“During this difficult economic time, we must provide assistance to small businesses that are trying to expand and create jobs,” Chris said. “The Admiral Hotel was seeking help in refinancing its mortgage and making necessary repairs, and I applaud the Small Business Association’s willingness to lending a helping hand. I encourage all Delaware small businesses that are looking to refinance their mortgage to take advantage of this loan program.”
The SBA 504 refinance program is only for businesses that can demonstrate that their loans are current and that they have successfully made all required payments under original or modified bank terms. There is a new, independent appraisal required for all projects and existing 504 projects and government-guaranteed loans are not eligible to be refinanced.
To click here to learn more about the SBA 504 loan.