Hotel Finance offers USDA B&I Loans on Hotel Properties in eligible areas
rural locations only

Restricted to Rural Locations

LTV’s up to 80%

USDA B&I Loans up to 80% LTV

owner operated businesses

We work with Owner Operated Businesses located in a USDA Eligible Area

Passionate – Dedicated – Professional

USDA B&I Hotel Loans

USDA B&I Hotel Loans provide long‑term, low‑rate financing for hotel acquisitions, refinancing, and development in eligible rural markets. These USDA hotel loans offer higher leverage, flexible underwriting, and competitive terms designed specifically for hotel owners seeking affordable capital outside major metro areas. Whether you need funding for a hotel purchase, renovation, or new construction, USDA B&I Loans for hotels deliver a powerful financing option for qualifying rural hospitality properties nationwide.

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USDA B&I loan program

Hotel Finance can assist with a USDA B&I Loans when the property is located in a designated eligible area.

USDA B&I Loans are strictly for rural areas with populations of < 50,000. The property must be located in a designated eligible area for consideration under the USDA B&I Loan Program.

Acceptable Use of Proceeds on a USDA B&I Loan:

  • B&I Loans may involve acquisitions, construction, conversion, repair, modernization or debt refinance
  • Loan proceeds can be used for real estate acquisition and/or improvements, machinery, equipment, furniture, fixtures and working capital
  • Closing costs and guarantee fee

We can assist on Loan Amounts from $500K up to $20 Million on the USDA B&I Loan Program.

 

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
USDA B&I Loans from Hotel Finance

USDA B&I Hotel Loans FAQs

Here are a few of the questions pertaining to USDA B&I Hotel Loans. If you have any additional questions, please contact us – we’re here to assist you through the process of obtaining a USDA B&I Loan.

USDA B&I loans are available for hotels located in eligible rural areas and can be used for acquisitions, refinancing, renovations, and new development.

USDA B&I hotel loans offer long-term fixed rates, high leverage, and flexible underwriting for hotel owners in qualifying rural markets.

A Minimum down payment of 20% on a hotel purchase+ closing costs will be required on a USDA B&I Hotel Loan. For refinances you will typically need to have a minimum of 25% equity in the property.

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work with hotel finance on your next USDA B&I loan

Our Process to get your financing request approved.

USDA B&I Loans typically take 120 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.

USDA B&I Flyers

Download our USDA B&I Flyers below.

Check Eligibility

Check to see if your property is located in a USDA eligible area.

It All Starts With a Conversation!

Have a deal you’d like to discuss? Partner with Alliance – we’re results-oriented and focused on helping you close transactions efficiently.

For Commercial Real Estate Financing, Please call

(866) 712 4175

info@hotelfinance.biz

Ready to Apply?

It’s Fast and Easy with Alliance on your side!

Disclosure

Alliance Business Capital is a commercial loan intermediary and advisory firm and may act as a correspondent lender for certain programs. We are not a direct lender. All financing is arranged through an Alliance lending partner and is subject to lender approval, underwriting requirements, and market conditions. Terms, rates, and eligibility criteria may vary by lender, property type, and borrower qualifications. Nothing on this page constitutes a commitment to lend or an offer of credit.