Rajiv Patel and his wife, Roshni, have managed the Muncie Day’s Inn for about ten years. Recently, Rajiv and Roshni purchased the Days Inn from Rajiv’s parents, aunt and uncle.
The Patels financed the acquisition with a loan from the U.S. Small Business Administration 504 program through First Merchants Bank and Indiana Statewide Certified Development Corporation.
Indiana Statewide CDC partners with local lenders to provide SBA 504 financing to help small business owners buy property and equipment. SBA 504 loans offer owners a low, fixed interest rate and require a smaller down payment than conventional financing.
Rajiv Patel says, “We are happy with our SBA 504 loan. We have a below-market interest rate fixed for 20 years, and made only a low down payment compared to commercial loans.”
Mark Tillman of First Merchants Bank says, “The SBA 504 loan allowed the next generation to buy the family business with a minimal equity investment, and that helps them conserve cash for other necessary expenses. The loan helped the bank offer the borrower a flexible loan structure.”
Muncie’s Days Inn is a two-story, 61-room hotel located a short distance north of Ball State University. It offers free hot breakfasts, business facilities and accommodations for small pets. The Patels have nine employees.
Indiana Statewide CDC has provided more than $500 million to over 1,200 Indiana companies since 1983, creating or saving15,000 jobs, and is the most prolific CDC in Indiana.
Indiana Statewide CDC Executive Director Jean Wojtowicz says, “The SBA guarantees bonds sold privately to finance a portion of the loan. SBA 504 loans help small businesses grow because borrowers may put as little as 10 percent down and receive a low, fixed interest rate for as long as 20 years.”
First Merchants Bank (www.firstmerchants.com) is the largest portion of First Merchants Corporation. Founded in 1893, First Merchants is based in Muncie and is the largest financing services holding company located in Central Indiana. Banking offices are in Adams, Allen, Brown, Delaware, Fayette, Hamilton, Hancock, Hendricks, Henry, Jay, Johnson, Lake, Madison, Marion, Miami, Morgan, Porter, Randolph, Shelby, Union, Wabash, and Wayne counties in Indiana; Cook and DuPage counties in Illinois; and Butler and Franklin counties in Ohio. Lafayette Bank & Trust, a division of First Merchants Bank, serves Tippecanoe, Carroll, Jasper, White, Clinton, and Montgomery counties.
Days Inn, Muncie (www.daysinn.com) is located just off Indiana route 332 (McGalliard Road) north of Ball State University. The two-story, 61-room hotel offers free Wi-Fi, breakfast buffet, business facilities, microwave ovens, mini-refrigerators and a fitness room. Pets are welcome for a small fee.