The SBA 7(a) is our most popular loan program for financing hotel properties. We have a fast efficient process and can typically review a hotel financing request within 2 business days and have a term sheet to you within 2-3 business days. Our closing ratio on SBA Hotel Loans when a term sheet is provided is second to none.
SBA 7(a) Loans for the Financing of Hotels are available through Alliance Business Capital from $500,000 to $5,000,000 and more on a case-by-case-basis.
Some Benefits of the SBA 7(a) Loan include:
- Longer repayment terms, up to 25 years on real estate
- Frees up cash to expand your business
- Low down payment of as little as 15% on Hotel Properties
- Construction Financing, PIP Financing, FF&E Financing are all eligible under the SBA 7(a) Loan Program
- Seller Financing is allowable as a 2nd Mortgage under certain conditions – would still require a minimum of 10% borrower injection
- Closing timeframe of 45- 60 days
| Maximum Loan Amount: | $5 Million with exceptions up to $6.5 Million |
| Minimum Loan Amount: | Typically $500,000 however will consider loans down to $350,000 on a case by case basis |
| Use of Proceeds: | Expansion, New Construction, Purchase Equipment or FF&E, Purchase a New Building and Land, Lease-hold Improvements, Working Capital, Refinance Debt (for compelling reasons) Purchase Inventory, Start a Business |
| Who Qualifies: | Must be a for profit business & meet SBA size standards, show good character, credit, management, and ability to repay. Must be an eligible type of business. |
| Prepayment Penalty: | Typically a 3 year prepayment penalty will apply |
| Terms: | Up to 25 years on Real Estate 5-10 Years on Working Capital, Machinery and Equipment Loans |
Questions or Comments
Alliance Business Capital understands the Hospitality Business and we understand SBA Loans. No one will work harder to get your hotel financing request approved. Give us a call today or Apply Online to get the process started. Have questions – contact us.
Thank you for the opportunity to work with you on your next hotel financing request.