Small Businesses Taking Advantage of SBA Loans and CARES Act Provisions at Monterey Motorsport

1000 503 Monterey Motorsport Park

First businesses moving into the newly opened car community

With construction complete, many owners are now rolling into Monterey Motorsport Park, the one-of-a-kind garage-condo complex and car community along Highway 68 adjacent to the Monterey airport.

Among the new owners are a variety of small local personal-service businesses, where the owners primarily need an office and either a shop or convenient space to store products or equipment (not to mention personal automobile or motorcycle collections). These Monterey Motorsport early birds include:

  • McCall Events — Gordon McCall’s business that organizes and hosts the elegant McCall’s Motorworks Revival event at the Jet Center during Monterey Car Week, as well as many other hot-ticket gatherings on the Monterey Peninsula.
  • A general contractor
  • An electrical subcontractor
  • A wine storage business
  • A high-end auto detailer
  • An ecommerce retailer

It’s anticipated that the next wave of businesses joining the many auto collectors and motorsports enthusiasts in the community will include next-generation auto sales brokers with wholesale or resale DMV licenses, high-end auto shops and other non-auto-related small businesses.

Businesses must be low-impact in terms of water usage, traffic, parking, and noise. Full CC&R requirements are available from the community’s brokerage team.

SBA Financing Makes Owning Your Garage-Condo Highly Affordable

Small Business Administration (SBA) financing — plus plunging interest rates and a key provision of the CARES Act — make now actually one of the best times to relocate your business to Monterey Motorsport Park, the opposite of what one might think.

Loan rates on 25-year fixed SBA loans have reached record lows of around 3% — and less than that for 20-year and 10-year SBA loans. In addition, a provision of the recently enacted CARES Act to help businesses through the COVID-19 crisis provides for up to six months of loan forgiveness without tax consequences for holders of SBA 504 loans. This can give you a good head start in covering your expenses until hopefully there’s clear light at the end of the tunnel. (Note: The six-month loan forgiveness feature is also available for SBA 7A loans, but these are typically second-choice options for individuals buying commercial real estate.)

Looming Deadline for Six Months of Loan Forgiveness

The SBA’s six-month loan payment relief program is only available for a very limited time. To ensure making the funding submission deadline of August 13th, your loan package needs to be received before the end of July. This means you need to tour the Monterey Motorsport Park community, choose your garage-condo unit and apply for SBA 504 financing to make your purchase — soon!

With an SBA 504 loan, you can make a down payment of as little as 10% and keep the rest of your capital working in your business. The rates are fixed and fully amortized, so there’s no balloon at the end. In addition, borrowers can hold multiple SBA loans at the same time, up to the SBA’s aggregate lending cap of $5 million. And now, you can get six months of loan payment relief!

Prequalifying Speeds Purchase Process

Monterey Motorsport Park’s preferred SBA lender, TMC Financing, can prequalify garage-condo buyers at Monterey Motorsport Park by reviewing three years of business and personal tax returns, interim business financial statements that are less than 90 days old, a schedule of any business debt, and a personal financial statement. Their experts can also walk you through the details about the CARES Act.

Because TMC partners with a bank on every SBA 504 transaction, the firm has solid relationships and understands the banking landscape. This can help TMC source the best lender to maximize your chances for quick approval for your loan. For additional information about using an SBA loan to purchase at Monterey Motorsport Park, email Bruce Whitaker at TMC Financing, or call (408) 483-9599.

Space Is Going Fast

Sales are continuing to close quickly at the complex, even in these unprecedented times. Approximately two-thirds of the garage-condos are sold or in escrow. Features include:

  • Units ranging from 700 sq. ft. to 2,100 sq. ft., with ceilings of up to 25 feet and a spacious mezzanine to create a loft office or personal retreat 13 feet above the garage floor
  • Completely fenced layout — with access-controlled entry, video surveillance and pro-active remote guarding services
  • Oversized roll-up doors for easily moving vehicles and business products or supplies into and out of your garage-condo
  • A separate walk-in door for owners and guests
  • High-speed Internet and cable TV options for web access, VoIP phone and cable TV service

To learn more about Monterey Motorsport Park, contact one of our brokers or development team members below. We have a number of ways you can “tour” the community virtually and view our fully furnished sales model from the comfort of your own home. And of course, one of our brokers will be happy to meet you at the complex personally to tour the space — with appropriate social distancing and safety considerations as you walk the site.

  • Josh Jones, Mahoney & Associates, [email protected], (831) 233-2196
  • Ryan Clark, Cushman & Wakefield, [email protected], (831) 755-1635
  • Dennis Chambers, [email protected], (408) 605-6760
  • You can also get in touch with Gordon McCall, who’s part of the development team and will be relocating his business — McCall Events — to the community upon build-out, at [email protected] or call (831) 372-9311.
  • Or you can contact Ralph Borelli at [email protected] or call (408) 521-7117.

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Monterey Motorsport Park II located less than a mile from the original Monterey Motorsport Park coming soon.
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