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Thank you for your interest in our Hotel Loan Programs.

Alliance Business Capital appreciates the opportunity to assist you with all of your Hospitality Property Financing needs.

Your business is very important to us and we will work hard to structure a Hotel Loan that meets your current financing needs whether you’re seeking to refinance an existing loan, purchase a new hotel, complete some renovations in order to satisfy an outstanding PIP or looking to build a new hotel and need construction financing you can trust Alliance and our Capital Partners to offer you solutions.

Alliance offers the following Hotel Loan Programs throughout the U.S.

Our Hotel Loan Programs

SBA 7(a) Loans

SBA 7(a) Loans are available through Alliance Business Capital from $350,000 to $5,000,000

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

  • Long repayment terms – reducing monthly payments
  • Frees up cash to expand your business
  • Low down payment of 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 station/convenience stores, restaurants, assisted living facilities, and day cares

SBA 504 Loans

SBA 504 Loans available up to $15,000,000

Some Benefits of the 504 Loan include:

  • Lower down payment than a Conventional Loan-typically 15 -20%
  • Long repayment terms – reducing monthly payments
  • Frees up cash flow to expand your business
  • Many rate options including long term fixed rates
  • Associated fees and soft costs may be financed in the loan

USDA B&I Loans

Alliance Business Capital can assist on USDA B&I Loans up to $10,000,000

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 fees are also eligible

Construction Loans

Alliance has access to Hotel Construction Capital under the following Loan Programs:


SBA Construction Loans

SBA Construction Loans

Alliance now offers both the SBA 7(a) Loan (information below) and the SBA 504 Loan which allows for Construction Loans up to $15 Million (must be a good flag and the owners must have plenty of hospitality ownership experience with good liquidity).

Click here for more information on the SBA 504 Loan.

Basic Criteria on SBA 7(a) Loan:

  • Maximum Loan Amount is $5 Million
  • Maximum Loan to Value is 75% – typically you must have a minimum 30% verifiable capital injection into the project
  • Must be able to qualify for SBA 7(a) Loan
  • Must be a Strong Flag
  • Must have outside income from other properties
  • Must have SBA full eligibility – no open SBA Loans
  • Must have good liquidity
  • Must have good experience as owner/operator

Typical Loan Fees:

  • 1 to 1.5% Construction Loan Fee – paid to Bank
  • 1.5% Commercial Loan Fee – paid to Alliance
  • SBA Guaranty Fees Apply
  • Third Party Reports
  • Alliance Processing Fee

Other Criteria:

  • Bank must approve Contractor
  • Contractor must have a Payment and Performance Bond for the Project
  • Additional conditions may apply upon Bank reviewing complete package

 

Thank you for the opportunity to assist you.

Conventional Construction Loans

Conventional Construction Loans

Alliance can now assist with Conventional Hotel Construction Loans on a limited basis.

IMPORTANT NOTICE:
This program is for experienced Hotel Developers only at this time with a minimum of 3 successful Hilton or Marriott Properties that they have built from ground up and own in their existing portfolio.

 

Loan Size:
$5 Million to $25 Million

Acceptable Flags:
Currently only Marriott and Hilton limited service properties are being considered under this program

Borrower Experience:
Borrower must have an existing portfolio of Hilton and/or Marriott limited service hotels (3 minimum)
Borrower must have developed, from ground up, a minimum of 3 Hilton and/or Marriott limited service properties

Maximum Loan To Costs:
Generally 65% Loan to actual Hard Costs

More information is coming soon.

Life Company Loans

Alliance Business Capital now has a new Hotel Loan Program underwritten by a Life Company.

Please see below for basic guidelines/information:

Territory:
Nationwide

Minimum Loan Amount:
Varies depending on which Life Company $20,000,000 – $40,000,000 is typical

Maximum Loan Amount:
$400,000,000

Terms:
Prefer a minimum loan term of 7 years, longer terms available

Rates:
4.00% to 7.5%

Preferred DSC:
1.40 – 1.50

Types of Properties Considered:
Hotel, Industrial Building/Warehouse, Multifamily, Office, Retail

Life Company Fee:
1% is typical

Alliance Fees:
$2500.00 Retainer Fee (paid upfront)
1% Success Fee (paid at closing)

Note:
This Life Company will consider Construction/Perm, First Mortgage, Fixed Rate Mortgage

Contact Us for more information.

Bridge Loans

Alliance Business Capital has formed Business Relationships with 2 – 3 Reputable Bridge Lenders to better assist our Clients.

Below are one of our Lending Partners terms which are not all inclusive.

Rates:
As low as 8.5%

Loan Size:
$1 Million Minimum
$50 Million Maximum

Acceptable Uses:
Purchase, Refinance, Major Rehab

Terms:
2 & 3 Year Terms available

Leverage / Loan to Value:
Up to 80% of Actual Cost Maximum
Typically 65% LTV

Minimum FICO Score:
620 Minimum
680 Average

Non-Recourse:
Available on Case by Case basis

Prepayment Penalty:
Step Down Prepay, Flat Prepay, YM

Debt Service:
Varies with Investor

Amortization:
Interest Only Payments are possible

Origination & Application Fee(s):
Alliance has a $2500.00 Engagement/Processing Fee – paid upfront
Alliance has a 1 to 3% Success Fee – paid at closing and determined after a review of a full package
Lender/Investor Fees will also be applicable and disclosed and determined after a review of a full package

Conventional Loans

Loan

Click here for Conventional Loan Flyer

Summary
Alliance Business Capital’s Conventional Loan Program is for small businesses requiring “brick and mortar” financing with long-term, fixed-rate financing for the acquisition or refinance of commercial real estate.

Projects are secured by a 1st Deed to Trust/Mortgage on commercial real estate, having a maximum Loan to Value of 70%.

Minimum Loan Amount:
$500,000

Maximum Loan Amount
1st TD – $7,500,000

Maturity and Amortization
Conventional 1st Deed of Trust/Mortgage – Up to 30 year Amortization with a 10 Year Term

Maximum LTV
Multi-Purpose Properties – Up to 70% LTV

Conventional Financing Eligibility
Subject property must be at least 51% occupied by the owner. Loans will not be made to entities engaged in speculation or investment in rental real estate.

Conventional Loan Eligible Use of Proceeds
Conventional Loans are primarily for the refinance or acquisition of commercial real estate.

Conventional Financing Ineligible Use of Proceeds
The Conventional Loan program cannot be used for working capital, inventory, or business acquisitions.

Eligible Property Types
• Multi-Use: Warehouse, Office, Industrial, Medical, Flex, Auto Body, Retail.
• Special Use: Hospitality, Mini-Storage, Cold Storage, B&B, Urgent Care Centers, Surgery Centers, Auto Repair, Car Dealerships, Executive Suites, Wineries, Gas Stations, Assisted Living, and Golf Courses.

Rate Option / Fees
• Conventional 1st Deed of Trust/Mortgage – Up to 5 year Fixed Rates available.
• Loan Fees – Lender will typically charge up to 1% loan fee.

Underwriting Requirements
• Prior Ownership and Management Experience
• Minimum FICO of 650
• All loans are Full Recourse and require the personal guarantee of any and all individuals or entities holding 20% ownership interest or more.
• 1.0x Minimum Debt Coverage Ratio (DCR) for the most recent FYE and Interim period is required.

Capital Markets

Alliance now has access, through our Lending Partners, to the Capital Markets.


Capital Market Overview

Alliance’s Lending Partners to the Capital Markets offers cost-effective and flexible structured debt and mezzanine loans, such as secured credit facilities comprised of term loans and revolvers, subscription lines secured by investor commitments, traditional warehousing and term facilities for debt platforms, financing for loan portfolio acquisitions and co-lending large loans; a-notes, pari-passu and senior/sub including mezzanine.

Lenders Guidelines

Structured Debt

Product Types:
Secured Credit Facilities comprised of Term Loans and Revolvers
Subscription Lines secured by investor commitments
Traditional Warehousing and Term Facilities for debt platforms
Financing of Loan Portfolio Acquisitions, performing and non-performing portfolios

Property Types:
Office, Multifamily, Retail, Industrial, Full-Service Hotels

Preferred Size:
Secured Credit Facilities: $100 million to $750 million
Subscription Lines: $50 million to $100 million
Warehousing: $100 million to $500 million
Financing of Loan Portfolio Acquisitions: $50 million to $500 million

Term:
Fixed or Floating / 3 to 10 years;
Secured Credit Facilities can combine multi-rate/duration notes

Markets:
Prefer Primary Markets, Domestic and International

Borrowers:
Real Estate Funds, Separate Accounts, REOCs/REITs and Insurance Companies


Mezzanine Loans

Product Type:
Secured Mezzanine Loans behind CMBS or Life Company Senior Mortgages

Property Types:
Office, Multifamily, Retail, Industrial, Full-Service Hotels

Markets:
Primary Markets, Domestic and International

Structure:
Bankruptcy remote SPE, customary intercreditor and cure rights

Size:
$25 Million to $200 Million

LTV:
Up to 75%

Term:
1 to 10+ years

Rate:
Market rate depending on LTV and risk, current pay (fixed/floating)

Coverage:
Target Minimum 1.2x from income in place

Hedge Funds Loans

Alliance Business Capital is pleased to offer the following Hedge Fund Lending Program which is designed for Income Properties, Construction, Raw Land Acquisition and Development Loans.

Existing Properties Only Currently we can only assist with refinancing or purchases of existing properties.

 

Basic Transaction Features:
Loan Amounts: $10 – $550 million

Loan Term:
2 – 6 years

Recourse:
Typically, most deals are recourse deals.

Prepayment:
Loans generally may be prepaid at any time after 2 years without penalty. Prepayment penalties may be required for shorter terms.

Loan to Value:
Loan amounts can be up to 75% of the Bank’s approved appraised value.

Loan Rates / Fees:
Rates start at Wall Street Journal Prime + 3% depending on the collateral type and risk. Loans are generally interest only and highly leveraged loans may contain an equity kicker or additional fees.

Alliance Business Capital Fees:
Alliance has an engagement/processing of $2500.00 – paid upfront
Alliance has a success fee – typically 1% of the final loan amount and paid at closing

Hedge Fund Origination Fee:
Typically one percent

Hedge Fund Commitment Fee:
Typically one percent

Loan Collateral:
Real estate assets. We specialize in land, land development loans and other property types (e.g., hotels and special purpose properties) whose special circumstances disqualify them from lowest-rate financing. We also provide “bridge loans” on traditional multi-family, retail and office properties that need to be “turned-around” before they can qualify for conventional loan underwriting.

Quick Response:
Our Partner has in-house staff for most preliminary market, engineering, and legal reviews, allowing us to quickly quote specific loan terms based on information provided in the loan request.

Portfolio Lender:
This hedge fund lender originates loans for its own portfolio so the borrower saves time and money dealing with one lender and one set of due diligence and closing personnel.

Loan Flexibility:
Alliance’s works hand in hand with this lender and together we will strive to tailor a loan structure to fit your deal, unlike so many other institutions that require your deal to fit their structure.

SBA Loans

This is a new loan program for Alliance. Please see below Criteria:

Minimum Loan Amount:
$500,000

Lien Position:
Can be 1st or 2nd Position (no need to refinance a good 1st Mortgage)

Acceptable Uses:
To meet PIP
For upgrades
Renovation

Eligible Properties:
Flagged Properties
Non-Flagged Properties
Older Properties (must be well maintained and cash flowing)
Interior & Exterior Corridors

Debt Service:
Minimum 1.25%

Term:
Up to 10 years Maximum

Loan to Value:
Up to a Maximum CLTV of 80% on cash flowing and well maintained properties

Must have Sufficient SBA Eligibility and meet SBA Guidelines.

SBA 7(a) Video
SBA 504 Video
Questions, Comments or Further Assistance

If you have any questions about any of the above Hotel Loan Programs please do not hesitate to contact us or if your ready to get the loan process moving you can apply online.

Thank you for allowing us the opportunity to assist you with your current Hospitality Property Financing request.