GRASS VALLEY, California, and NEVADA CITY, California—Community Bankshares Inc. subsidiaries Thomas Financial Group, Phoenix Lender Services, and Community Bank & Trust, in partnership with Siguler Guff, successfully closed a $13.9 million bridge loan. This loan will be taken out by a USDA Business & Industry loan valued at $14.3 million, enabling the acquisition of two properties and the takeover of operations at The National Exchange Hotel in Nevada City and The Holbrooke Hotel in Grass Valley.
The bridge loan will help preserve two landmarks, secure 128 local jobs, and strengthen long-term economic development in the Sierra Nevada Foothills.
“This loan closed in just 35 days, which is proof of what’s possible when public-private collaboration, urgency, and experience align,” said Zach Chandler, senior vice president of government guaranteed lending at Thomas Financial Group. “We’re proud to have delivered speed and certainty on a project that supports both history and economic sustainability.”
By providing immediate liquidity while the long-term USDA loan was processed, the financing allowed ownership to avoid costly delays, preserve capital, and focus on operational continuity.
Originally built in the 1850s and completely renovated in 2020, the 38-room National Exchange Hotel and the 28-room Holbrooke Hotel now combine Gold Rush-era architecture with modern amenities. The hotels include the Holbrooke’s Golden Gate Saloon and Iron Door Tavern, and The National’s Lola Restaurant and Grand Lounge, contributing to a food and beverage program that accounts for roughly 60 percent of total revenues.
The hotels are just 10 minutes apart and less than 2.5 hours from the Bay Area. Operations will be overseen by a partnership between Acme Hospitality and Horizon Hotel Group.
