Financing for hotels via SBA loan programs is up over 300% in 2014 from the prior year. As the hospitality industry shows positive signs of growth, more hotel owners are seeking loans to purchase, renovate and build hotel properties.
SBA-504 FINANCING FOR HOTELS
- Up to 85% financing available
- Loans can be used for hotel purchases, renovations, and construction
- Total project of up to $30 million
- Loans are facilitated by a CDC (Certified Development Company) in partnership with a bank or other lender
- Fixed interest rate - 20 years, fully amortized on CDC/SBA portion
- No additional collateral required
- No maximum total project size, no limit on number of loans for projects that take advantage of SBA’s Green Energy program
- CDC facilitates entire financing by marketing the deal to multiple lenders to ensure the best rates and terms, and a successful close of escrow
“The demand for high-tech capabilities in hotels is rising and our renovations would have been very difficult without SBA 504 financing,” said La Quinta owner Rupesh Patel, who has built, owned and operated hotels for over 35 years. “La Quinta provides a top-quality experience and will continue to compete with higher-scale motels, thanks to the SBA-504 loan. It makes buying a commercial building achievable.”
Tomorrow, July 4th, America celebrates their independence. It is also a day that many reflect on the men and women that have served in our Nation’s military to help allow us our freedom. In honor of these Veterans of the United States Military, the VetLoan Advantage was born. Veterans looking to buy, build or grow their business can now receive cash savings in three ways with this loan program.
For Veteran entrepreneurs approved for an SBA-504 loan, CDC Small Business Finance will present the borrower a cash rebate of up to $3,000 which will be awarded to help offset certain loan expenses. Particularly, the appraisal and environmental fees. With low rates still available that are locked in for the life of the loan, the savings to the borrower are considerable.
The Community Advantage Loan Program provides financing up to $250,000 for working capital, equipment, inventory, tenant improvements and business acquisitions. Fees include an SBA fee of 2-3% and a packaging fee of up to 1%. In support of the Nation’s Veterans, CDC Small Business Finance will waive the packaging fee for veterans which is a savings of up to $2,500!
The SBA Microloan‘s Veteran participants will also see a considerable savings through this program. We will waive the 2% loan fee for a savings up to $1,000. That’s more money in your pocket for the important things you need to run your business.
It’s all our big way of saying THANK YOU to our Veterans for all that you do and have done to help make our country the greatest on earth. Happy Fourth of July Veterans! Happy Independence Day to us all!
If you are a Veteran that would be interested in the VetLoan Advantage savings contact us today at 800.611.5170 or find a loan expert near you. Are you a transitioning from service and looking for meaningful employment in the civilian workforce? SBA’s Boots to Business may be for you.
Yesterday was a big day for us. We were all glued to our computer screens as our President and CEO, Kurt Chilcott, had the wonderful opportunity to be recognized on stage by former President Bill Clinton at the Clinton Global Initiative in Denver.
This special acknowledgement at CGI was brought about by a grant from Bank of America that will allow us – the nation’s leading Community Advantage lender – to reach more eligible small businesses in Los Angeles County. This county has seen a 70% drop in small business loans under $100,000 from 2007-2012, according to a recent California Reinvestment Coalition report.
Since its inception, the Community Advantage program has provided $100 million to small businesses via 744 approved loans. CDC has approved 123 of these loans for $21 million.
“The Community Advantage program has reached a milestone in its success, but we all can do more,” said Chilcott. “Our goal in L.A. County is to create 240 new jobs in underserved communities through Community Advantage lending.”
According to a Bank of America grant summary: “Small businesses find it increasingly difficult to borrow growth capital in the loan size between $50,000 and $350,000. Yet this capital is among the most valuable to small businesses – larger than the amounts supportable by the business owners’ personal credit, but too small to be obtained as part of a real estate purchase transaction. Businesses need loans in this ‘missing middle’ range to expand operations, hire more workers and serve new markets.”
Through all its lending programs,– including SBA-504 loans for commercial real estate and SBA microloans – CDC Small Business Finance has provided over $4 billion in financing to small business in 37 years, leading to the creation of more than 130,000 jobs.