Business & Tech
New Santa Cruz Hotels Receive SBA 'Green' Financing
Owners of Hyatt Place and Lexington Hotel benefit from SBA-504 loans
Two new Santa Cruz-area hotels have received SBA financing to proceed with construction that will add 234 upscale rooms to the region’s hospitality portfolio.
The owners of Hyatt Place in central Santa Cruz and the Lexington Hotel in Scotts Valley will receive $25 million and $20 million, respectively, in SBA-504 loans to build the new properties. CDC Small Business Finance provided the financing in conjunction with Aileron Investment Management.
Both hotel owners took advantage of the SBA-504 Green Energy financing program by committing to install solar panel systems on their properties.
Find out what's happening in Santa Cruzfor free with the latest updates from Patch.
“The advantages of SBA financing is quickly spreading throughout the hotel industry, particularly because of the green energy benefits,” said loan officer Kelly Ryan of CDC Small Business Finance who facilitated both financing projects.
Using the Green Energy 504 program, hoteliers can get up to $5.5 million in SBA funds, which can then be paired with a traditional bank loan to boost the total capital available to over $25 million.
Find out what's happening in Santa Cruzfor free with the latest updates from Patch.
To qualify for the Green Energy 504 loan, hotel owners need to demonstrate they will reduce energy use by 10% or produce 10% of the energy required to run the property.
When fully operational, the two hotels are expected to create at least 100 new jobs.
For more information on SBA-504 green financing, contact Kelly Ryan, 510.597.2059, kryan@cdcloans.com. For general inquiries about CDC Small Business Finance call 800.611.5170.
