SBA Hotel Loans

Hotel Finance specializes in SBA Hotel Loans for Hotel Properties located throughout the U.S. We have been assisting Hotel Owners with Hotel Financing since 2010. We understand SBA Loans as well as the Hospitality Business.

Passionate – Dedicated – Professional

SBA Hotel Loans are our specialty at Hotel Finance

easy qualification

With our Streamlined Process

LTV’s up to 85%

Hotels are limited to 85% LTV

owner operated businesses

Must be an Owner Operated Business in the U.S.

Passionate – Dedicated – Professional

SBA Hotel Loans offered by Hotel Finance

Hotel Finance can assist with the following SBA Hotel Loan Programs throughout the U.S.

Alliance specializes in the SBA 7(a) Loan Program. It is the most popular SBA Loan. Many SBA Lenders are capped at a maximum loan amount of $5 Million, however our Lending Partners will lend up $6.5 Million with a Pari Passau loan.

Some of the Benefits of the SBA 7(a) Loan include:

  • Long Repayment Terms – up to 25 years which can greatly reduce monthly payments
  • Frees up cash to expand your business
  • Low Down Payment – as little as 10% on multi-purpose real estate acquisitions and as little as 15% on single-purpose real estate acquisitions
  • Financing available for most industry types including: Hotel/Motels, Gas Stations/Convenience Stores, Restaurants, Assisted Living Facilities, Self-Storage Properties and Day Cares just to name a few. Financing under the SBA 7(a) is available to most owner/operated businesses located in the U.S.
  • Working Capital allowed
  • PIP Financing allowed
  • Refinance allowed
  • New Hotel Construction allowed
  • 25 Year Amortization on Real Estate

Alliance can assist with an SBA 504 Loan up to $15 Million.

Some Benefits of the 504 Loan include:

  • Lower down payment requirement than a conventional loan
  • Long repayment terms – reducing monthly payments
  • Many rate options including long term fixed rates
  • Frees up cash flow to expand your business
  • Associated fees and soft costs may be financed in the loan
  • Great for Construction & Larger Acquisitions

We will need the following items on all shareholders / owners holding a 20% or more ownership in the borrowing entity.

Loan Forms:

Documents

  • Personal Tax Returns for the most recent 3 years – need the complete Federal Tax Returns only, however we need the complete returns with all schedules and including W-2’s and K1’s for all 3 years
  • If applicable, we need the business returns for all entities for the most recent 3 years – need the complete Federal Tax Returns with all schedules
  • 2 ID’s – good copies of 2 government issued ID’s (e.g. Driver’s License and Passport)
  • Current year to date profit and loss statements with balance sheet and business debt schedules on all business owned by borrowers through the end of the most recent month

Additional Items

  • If a purchase, we will need an executed copy of the purchase contract, the sellers most recent 3 years tax returns and a current year to date profit and loss statement with balance sheet
  • If new construction, we will need a copy of the approved plans and the general contractor’s quote
  • If a franchise, we will need a copy of franchise agreement
  • If a PIP is involved, we will need a copy of the PIP and Contractor’s Quote to complete

In 2026, SBA Hotel Financing remains the most accessible path for first‑time hotel buyers. With rising PIP requirements and tighter DSCR expectations, SBA 7(a) continues to offer the most flexible structure for acquisitions, refinances, and renovations. Hotel Finance is an expert in SBA Financing for Hotels located throughout the U.S.

SBA Loans

Passionate – Dedicated – Professional

work with hotel finance on your next SBA hotel loan

Our Process to get your financing request approved.

SBA Hotel Loans typically take 45-60 days to close from acceptance of term sheet.

complete application

Complete our application and gather required documents from borrower.

third-party reports

Borrower puts up a deposit and third-party reports are ordered.

initial underwriting

Initial review of business financials and other supporting documents.

final underwriting

Review of Third-Party Reports and issuance of Loan Commitment.

term sheet issued

After Initial Underwriting if everything looks good a term sheet is issued.

loan closing

Upon acceptance of the Commitment Letter loan goes into closing.

SBA Hotel Loan FAQ’s

Here are some of the most frequent questions we receive at Hotel Finance from borrowers exploring SBA Hotel Loans.

Well as luck would have it, you are currently at a great place to start, www.hotelfinance.biz.  We have been specializing in SBA Loans for Hotel Owners since 2010 as Alliance Business Capital. We understand the process and exactly what is needed in order to obtain an SBA loan approval.We’ll guide you through every step of the way.

Under SBA Guidelines Hotels are considered special-use properties.

  • SBA 7(a) Loans require a minimum of 15% down + costs which means you will need around 19% of the total project costs.
  • SBA 504 Loans require a higher down payment – typically 20% down

Good Question! Several factors will determine which SBA Loan Program works best for you and we are here to assist you in making that decision.

The SBA itself leaves that up to the lenders. Most PLP Lenders will look for a 660 or more minimum score on the SBA 7(a) Loan Program, however we work with a Bank who will consider scores down to 600 as long as you have not had any mortgage lates in the most recent 12 months and no bankruptcies in the most recent 5 years.On the SBA 504 Loan Program Lenders typically look for credit scores over 700.

We have worked hard to try and streamline the process of obtaining an SBA Loan.In general, an SBA 7(a) will take approximately 60 days to close from your acceptance of a term sheet, while an SBA 504 Loan will take slightly longer with a closing time estimated to be 75 days.Much of the timeframe depends on you and how responsive you are to document requests.

Typically, underwriters will look for the following items:

  • If the property is an existing hotel, then the first thing they will review is the property cash-flow
  • The experience of the owner of the hotel
  • The character / credit of the owner
  • Global cash-flow – if the borrower has additional businesses where they have a 20% or more ownership interest
  • Liquidity of the borrower

These are some of the primary items an underwriter will consider when reviewing your loan request.

SBA 7(a) and 504 Loan Comparison

Feature SBA 7(a) Hotel Loan SBA 504 Hotel Loan
Max Loan Amount Up to $5 million – more with a pari passu loan $15 million+ (no hard cap)
Typical Use Cases Acquisitions, refinances, PIPs, FF&E, working capital Acquisitions, construction, major renovations, large PIPs
Down Payment 15% 20% typical
Interest Rates Variable (Prime + spread) Fixed (CDC portion), bank portion variable or fixed
Amortization Up to 25 years Up to 25 years
Collateral Often requires full collateralization Primarily real estate–secured
Speed to Close 45–60 days 60–90+ days
Best For Smaller hotels, limited‑service, partner buyouts, refinances Larger projects, construction, high‑cost acquisitions
Pros Lower down payment, flexible use of funds, working capital allowed Lower fixed rates, ideal for construction, larger loan sizes
Cons Loan cap at $5M, variable rates More paperwork, slower closing timeline

SBA Loan Flyers

Download our SBA Loan Flyers

SBA Loan Forms

Download our SBA Checklist of items needed along with our Loan Forms.

Get Started

Get your SBA Hotel Loan Application Started Online – It’s Fast and Easy

Hotel Finance offers SBA Loans in all States through our Bank Lending Partners.

Important Disclosures and InformationAll loan programs are subject to credit approval and loan amounts are subject to creditworthiness. Other underwriting standards and restrictions may apply. Alliance Business Capital is committed to the protection of personal information we collect and process. For more information about how we protect your privacy, please visit https://www.hotelfinance.biz/expertise/privacy-policy.Hotel Finance is a marketing name for Alliance Business Capital Inc.