SBA Lending Programs for Hotels and Other Properties:

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 position
    • 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 sale

Fees

  • 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,
but is not restricted to, the following types of properties:

  • Hotel/Motel, Apartment/Multi-Family, Office, Retail, Industrial, Warehouse, Self-Storage,
    Car Wash, Gas Station, Restaurant, C-Store, Truck Stop, Day Care Center, Golf Course and Others