Using the SBA 7(a) for a Hotel
Starting and running a business in the hospitality industry is expensive, which is why the SBA offers SBA 7(a) loans of up to $5 million to help business owners. When you work with SBA7a.Loans to get financing for your hotel, we’ll connect you with the best nearby lender with experience i
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Starting and running a business in the hospitality industry is expensive, which is why the SBA offers SBA 7(a) loans of up to $5 million to help business owners. When you work with SBA7a.Loans to get financing for your hotel, we’ll connect you with the best nearby lender with experience in your industry. In our decades of capital markets experience, we’ve amassed a large rolodex of relationships with both lenders and borrowers like you. So, if you need an SBA loan and you want the best rates, you’ve come to the right place.
An SBA loan can help you with common hotel real estate expenses, like:
Buying an existing hotel building. Whether you want to buy your owner-occupied property or are looking for a new location, we'll help you find a business mortgage that fits your unique needs.
Refinancing your current hotel. Are you unhappy with the terms of your current loan? You can use an SBA 7(a) loan to refinance.
New construction of a hotel. The SBA 7(a) loan has a $5 million maximum, and other SBA loan products provide up to $20 million in funds. Let us connect you with a lender that can make your construction dream a reality.
The SBA 7(a) loan isn’t just for real estate; you can also use it to fund working capital for your hotel, for repairs, and for equipment.
To learn more about the SBA 7(a) loan program or to get a free quote, simply click the button below!
Related Questions
What are the eligibility requirements for an SBA 7(a) loan for a hotel?
To qualify for an SBA 7(a) loan for a hotel, you must meet certain standards. These include good bookkeeping, understanding your creditworthiness, and having a solid business plan. Additionally, you must meet the eligibility and qualifications for the SBA 7(a) loan as outlined by the SBA.
What are the advantages of using an SBA 7(a) loan for a hotel?
The SBA 7(a) loan is a great option for small business owners looking to fund their motel. It is a versatile loan that covers almost all legitimate business expenses, including buying an existing hotel, constructing a new one, and refinancing existing debt. Additionally, the SBA 7(a) loan offers competitive interest rates and longer repayment terms than other loan products, making it an attractive option for hotel owners.
For more information on the SBA 7(a) loan, please visit https://www.sba7a.loans/sba-7a-loans-small-business-blog/sba-7a-loan-for-hotels.
What documents are required to apply for an SBA 7(a) loan for a hotel?
To apply for an SBA 7(a) loan for a hotel, you will need to provide the following documents:
- Agreement to purchase the business
- Letter of intent to buy the business
- Business tax returns for the past three years
- Any outstanding business debt
- Long-term business contracts
- Documentation of business assets
- Business lease agreement
- Incorporation documents and/or business license
- Business plan
- SBA Form 1919 (borrower information form)
- SBA Form 912 (statement of personal history)
- SBA Form 413 (personal financial statement)
- Financial statements, including a balance sheet, profit and loss, and income projection.
In addition, the SBA will usually order an independent business appraisal to give lenders an idea of what the true value of the business is.
To complete your application package, you’ll be required to submit SBA-specific forms and documents. The forms and documents commonly required in the application package include:
- SBA Form 1919 (borrower information form)
- SBA Form 912 (statement of personal history)
- SBA Form 413 (personal financial statement)
- Financial statements, including a balance sheet, profit and loss, and income projection.
The
What are the maximum loan amounts for an SBA 7(a) loan for a hotel?
The maximum loan amount for an SBA 7(a) loan for a hotel is $5 million. Real estate and land loans for new construction or for the purchase of existing buildings have a maturity of no more than 25 years. Equipment and working capital loans have a loan term of 10 years. Additionally, you can borrow more than $5 million if you choose to take advantage of the SBA’s go green program. In this situation, you can borrow up to $16.5 million over the life of the hotel. However, you are limited to a cap of $5 million per qualifying project.
For more information, please see the following resources:
What are the repayment terms for an SBA 7(a) loan for a hotel?
The SBA 7(a) loan for a hotel has a loan term of 25 years for real estate and land loans for new construction or for the purchase of existing buildings. Equipment and working capital loans have a loan term of 10 years. See SBA 7(a) Loan Terms, Rates, Fees, Maturity for more information.