Loan Criteria
Alliance Business Capital, through our diverse network of Lending Partners, offers Hotel / Motel Loans on most Flagged and Non Flagged Properties.
For information on Resort Property Financing please click here.
If you are seeking Financing from $20 Million to $350 Million on a Full Service Hotel please click here.
The following guidelines are for SBA, USDA B&I Financing to $10 Million.
Minimum Loan Amount:
$500,000 – lower loan amounts on a case by case basis.
Maximum Loan Amount:
$10,000,000
Lending Territory:
Nationwide
Loan Term Amortization:
Usually 20 – 25 Years
Collateral:
First position mortgage as certified by title search and title policy on property.
Must have a first security interest under UCC-1 on all business assets of real estate and operating entities.
Debt Service Ratio:
Minimum DSCR of 1.30x:1.00x depending upon property type, age, physical condition, location, and competitive market position.
Loan to Value:
Up to 80% on Branded Hotels and 65 – 70% on Non Branded.
Loan Types Offered:
SBA, USDA and Conventional Financing as well as Private Funds are available through our Lending Partners.
Appraisal:
An MAI Appraisal will be required from an Approved Appraisal Firm
Upfront Deposits:
Alliance has a minimum $1500.00 Processing Fee that is due upon signing a Commercial Fee Agreement. The Processing Fee is based on the Loan Amount, Loan Type and several other factors. Maximum Processing Fee is $2500.00.
Additionally you will be required to put up a deposit with the Lender for Third Party Reports such as Appraisals, Environmental Survey, Property Survey or other reports as the Lender may require.
Recourse:
Most loans will require all owners of 20% or more to personally guarantee the loan.
Loan Purpose:
Acceptable Loan purposes are for New Purchase, Rate and Term Refinances, Cash Out Refinances, or Construction of a New Hotel.
A more detailed and specific list of loan conditions will be supplied to you once our Lending Partner Underwriter has reviewed a Full Loan Package.
To get the process started on an SBA or USDA B&I Loan simply fill our out Quick App form and an Alliance Representative will contact you back in most cases the same or very next Business Day.
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