SBA Lending Programs for Hotels and Other
There are 2 types of governmental SBA loans available.
First is the 7a program for financing of $5
million or less. The second is the 504 program
for purchases between $1 million to $6 million. Each have its
strengths and specific requirements. Contact us so that your
specific questions can be answered immediately.
Start the process today.
Typically, a 504 loan
includes a loan secured with a senior lien from
Commercial RE Financing Specialists covering up to
50 percent of the project cost, a loan secured with
a junior lien from the CDC/SBA covering up to 35%
percent of the cost, and a contribution of at least
15% percent equity from the small business being helped.
Advantages of SBA Loans
- Smallest down-payment from borrower
- Very Low Interest Rates on CDC/SBA Loan
- Commercial RE Financing Specialists rates
can be fixed or floating
- Prepayment options
- Fully assumable loans
504 LOAN PROGRAM
Commercial RE Financing Specialists
specializes in providing long term permanent financing
to small businesses. Our loans, including the 504
Loan Program, are made through the Small Business
Administration (SBA) guaranteed loan programs.
Use of Proceeds
- Real estate acquisition or
construction - up to 85% hotel and other
commercial properties financing available
Loan Amount and Structures
- Financing available on projects up to $6,000,000
- Bank typically provides a first mortgage of
up to 50% of the total project cost
- This loan can range from $500,000 to $4,000,000
- The SBA, through a Certified Development Company
(CDC) provides up to 35% of total project cost in a second lien
- This loan can range from $300,000 to $5,000,000
Terms and Interest Rates
- First Mortgage - up to 25-year term on your
purchase with fixed and variable interest rates available.
- Second Mortgage - up to 20-year term for real estate
- Fixed rate is determined at SBA guaranteed 504 debenture
- First Mortgage - fees are always market competitive.
Second Mortgage - approximately 2.15% + 0.50% 1st mortgage loan fee +
legal review fee.
This fee is financed in the loan
- Fees also include customary closing costs, such
as appraisal & environmental report, construction loan fees
(if applicable), and bridge loans.
Eligible Businesses and Property Types
Almost any type of for-profit business is
eligible for financing. Commercial real estate must be,
is not restricted to, the following types of properties:
Apartment/Multi-Family, Office, Retail,
Industrial, Warehouse, Self-Storage,
Car Wash, Gas Station, Restaurant, C-Store,
Truck Stop, Day Care Center, Golf Course and