Thomas Financial Group Secures $19.975 Million USDA Loan for Major Mendocino Hotel Restoration
Community Bankshares
ATLANTA, July 22, 2025 (GLOBE NEWSWIRE) — Thomas Financial Group, a wholly owned subsidiary of Community Bankshares Inc., is proud to announce the successful closing of a $19.975 million USDA Business & Industry (B&I) loan for the refinance and full renovation of two historic hospitality assets in downtown Mendocino: The Mendocino Hotel & Garden Suites and Hill House Inn.
This milestone project, originated and underwritten by Thomas Financial Group, was financed through the USDA’s B&I program. The project will preserve and revitalize all guest rooms across the two properties, relaunch a centerpiece food and beverage destination, reactivate the largest indoor event space on California’s North Coast, and create over 50 new high-paying jobs, tripling the current staff and restoring these historic landmarks to full operation.
Once thriving anchors of the Mendocino community, both the Mendocino Hotel & Garden Suites and Hill House Inn had fallen into disrepair. With this USDA loan, the new owners, Castle Peak Holdings, will launch a comprehensive restoration that enhances the guest experience while preserving the charm and history that define this iconic coastal village.
The planned improvements include:
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Expansive renovations across both properties.
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Restoration of a three-meal restaurant and historic lobby bar at Mendocino Hotel.
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Reopening of North Coast’s largest indoor wedding venue.
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Upgrades to room layouts, ADA compliance, and coastal-facing suites.
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Activation of public gathering spaces for locals and tourists alike.
The Mendocino Hotel & Garden Suites, the only full-service hotel in the downtown district, will be a dynamic center of gravity for the North Coast on Mendocino’s historic Main Street, while Hill House Inn – famed as the setting for the drama TV series “Murder She Wrote” – will be restored as a hilltop retreat featuring the largest and most flexible meeting and event spaces on the North Coast, with ocean views and walking access to downtown Mendocino. Both properties will feature authentic local design elements and highlight regional artisans and makers through curated programming.
“This is what rural revitalization looks like,” said Zach Chandler, SVP, Government Guaranteed Lending for Thomas Financial Group. “We delivered a complex, long-term loan structure to support two of Northern California’s most irreplaceable hospitality assets, and did it with the stability of USDA financing.”
With an 80% USDA guarantee, a 30-year term, and no balloon payments, the loan provides unmatched peace of mind for the borrower, particularly in a volatile rate environment.
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Situated in a town with a regulatory moratorium on new hotel development, these properties represent a significant portion of Mendocino’s total hotel room inventory. With over 2 million annual visitors and no new supply on the horizon, the business case for reinvesting in these assets is as compelling as the historic preservation effort itself.
“This project is about more than restoring two historic hotels,” said David Better, Partner at Castle Peak Holdings. “It’s about breathing life back into community gems, reactivating jobs, and celebrating the unique cultural legacy and spirit of Mendocino. These hotels are deeply woven into the historic fabric of what makes Mendocino special. Everyone in the area has a story about these hotels; whether they worked there as a kid, had their high school prom there, or shared a memorable meal there with family and friends. We look forward to delivering a successful project and creating the next generation of memories, for locals and guests alike. The USDA loan gave us the ability to do that in a thoughtful, sustainable way—and the team at Thomas Financial made the process seamless from start to finish.”
This project is part of a growing trend where USDA financing is used to support economic development in iconic rural destinations, and Thomas Financial Group is leading the charge.
“We’re not just closing loans—we’re reactivating communities,” added Chandler. “If you have a hospitality, manufacturing, or rural development project in the pipeline, we can help you close faster, structure smarter, and build for the long term.”
If you’re looking to fund a rural acquisition, repositioning, or expansion project and need a lender who can bridge the gap and deliver USDA takeout, contact Thomas Financial Group today.
About Thomas Financial Group
Thomas Financial Group, a wholly owned subsidiary of Community Bankshares Inc., is a nationally recognized leader in USDA and SBA lending. In partnership with Phoenix Lender Services and Community Bank & Trust, TFG specializes in complex capital solutions that support rural economic development, small business growth, and infrastructure expansion.
About Community Bankshares Inc.
Community Bankshares Inc. is a privately held financial holding company headquartered in LaGrange, Georgia, with subsidiaries including Community Bank & Trust, Thomas Financial Group, and Phoenix Lender Services. Through its network of specialized financial institutions, Community Bankshares Inc. delivers innovative, relationship-driven banking and lending services across the United States, with a strong emphasis on rural development and community reinvestment.
Media Contact
Abigail Davison
Uproar by Moburst for Community Bankshares, Inc.
abigail.davison@moburst.com
