SBA 504 Loans for Sports and Entertainment Complexes
At Mercantile Capital Corporation we have crafted a niche for financing sports and entertainment complexes. We have financed indoor soccer facilities (we’ve closed 5 to date with 3 more pending for one client*), hockey and skating rinks, swim schools**, gymnastic academies, health and fitness clubs, and more. We have also financed entertainment complexes such as movie theaters, a ski resort, gun ranges, and a water park.
More often than not a loan for a sports or entertainment complex will require significant renovations or ground-up construction. In today’s lending environment, it may prove difficult to obtain a loan to construct (or renovate) a sports or entertainment complex as many conventional lenders are not comfortable with construction and/or understand the industry. Having closed over 680 loans, with a great number of them having a construction component, we have both the expertise and capacity to navigate through the process with you or your clients.
Green SBA 504 Loans
* Our client was able to do 5 SBA loans (and counting) thanks to the “green” loan provision (at least 10% of the energy used comes from a renewable energy source) within the SBA regulations. It allows borrowers who qualify for a green project the ability to obtain multiple SBA loans as the $5,000,000 aggregate cap on SBA financing is waived when the project meets this requirement. An added benefit is the borrower can also increase the maximum 2nd mortgage on each loan from $5 million to $5.5 million. In our client’s case, while he renovates or constructs each new facility he acquires, he also does the work to retrofit the building to meet the renewable energy requirement. Contact us and we can explain this provision further to you.
** Fun trivia: Even though we didn’t finance the particular facility, the Aquatic Club in Baltimore where Michael Phelps started swimming was financed with a 504 loan. We have financed different swim schools, so maybe we might help (in a very small way) the next Michael Phelps or at least provide the financing that will help children learn to swim and have fun in the process. And that, along with making the dream of commercial real estate ownership for that small business owner a reality, is enough for us.