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|Big expansion for Jasper's Hampton Inn with SBA 504 financing from German American Bank and Indiana Statewide CDC
Construction is beginning on a major overhaul of the Hampton Inn located next door to the well-known Schnitzelbank German restaurant in downtown Jasper. Seventeen new rooms are being added to the back of the Hampton Inn during the first phase of the project. When they are finished this autumn, work will begin to refurbish the remaining 73 rooms, lobbies, exterior and other parts of the building. The hotel remains open during the construction.
Co-owner Gail Hettinger says the entire project will be completed next year and will raise the total room count to 90. "The hotel is 17 years old; and it will look and feel brand-new when all the work is finished," she says. About two new full-time and two part-time jobs may be created, adding to the hotel's current 17 employees.
Hettinger, who is part of the family that owns the Schnitzelbank, obtained financing for the Hampton Inn project from the U.S. Small Business Administration 504 loan program through German American Bank and the Indiana Statewide Certified Development Corporation.
Indiana Statewide CDC works with local lenders to provide SBA 504 loans to owners of small businesses. SBA 504 loans can give small business owners long-term, fixed rate financing similar to commercial loan terms available for large companies. Loans from Indiana Statewide CDC and partner lenders in 2016 provided more than $79 million to 44 Hoosier small businesses, creating or saving 480 jobs.
Hettinger worked with Indiana Statewide and German American in 2014 when her family-owned company purchased the former Jasper Country Club for their catering and event businesses. Hettinger says, "It's nice to know exactly what we will be paying on our loan every month. The fixed-rate is a big help in planning our budget."
Michael Kern of German American Bank says, "Our bank uses the SBA 504 program to help several clients hedge their bets against fluctuating interest rates. And they can get into the program with a lower down payment than would be the case with a conventional loan. The 504 is a great program."
Jasper's Hampton Inn and Schnitzelbank restaurant are two of several business properties owned by the family of Larry and Betty Hanselman who founded the Schnitzelbank 56 years ago. Three generations of the family are involved in the business that also includes Klub Haus 61 in the former Jasper Country Club, Schnitzelbank Catering and the Schnitz Brewhouse & Pub; all in Jasper. Gail Hettinger is Larry and Betty Hanselman's daughter.
Indiana Statewide CDC (www.cambridgecapitalmgmt.com) has provided more than $486 mil-lion to 1,170 Indiana companies since 1983, creating or saving 26,500 jobs, and is the most prolific CDC in Indiana. Nationally, since Congress created the 504 program, SBA 504 loans have funded over $71 billion to more than 139,000 small businesses in the U.S. In turn, those small firms have created or retained over 2.1 million jobs.
Jean Wojtowicz says, "SBA 504 loans help small businesses grow because borrowing companies can put as little as 10 percent down and receive a low, fixed interest rate for as long as 20 years. The SBA guarantees bonds sold privately to finance a portion of the loan. With the guarantee, we can offer loan rates more favorable than generally available to small businesses."
German American Bank (www.germanamerican.com) is headquartered in Jasper, the city in which it was founded in 1910. German American provides financial services through 51 offices in 20 In-dian counties.
Schnitzelbank (www.schnitzelbank.com) is owned and operated by three generations of Larry and Betty Hanselman's family. The business is anchored by the 56-year-old Schnitzelbank German Restaurant and includes Schnitzelbank Catering, Klub Haus 61, The Schnitz Brewhouse & Pub and the Jasper Hampton Inn.