Loan Programs
We match each hotel and borrower with the program that fits: SBA, USDA or conventional. Every program below can be used for acquisitions and refinances, and many can fund construction, renovations and brand-required PIPs.
The SBA 7(a) program is the most widely used government-guaranteed loan for franchised hotels. It offers long repayment terms and can finance more than just the real estate.
Best for: Acquisitions and refinances of existing franchised hotels, including change-of-ownership PIPs.
For hotel projects larger than the SBA 7(a) limit, a pari passu structure pairs an SBA 7(a) loan with a conventional loan that shares the collateral on equal footing.
Best for: Larger hotel deals that need more than $5 million but still benefit from SBA terms.
The SBA 504 program combines a bank first mortgage with a long-term, fixed-rate debenture from a Certified Development Company (CDC). It works well for owner-operated hotel real estate.
Best for: Owner-operators who want long-term fixed-rate financing on the real estate.
Hotel projects that meet SBA energy goals, such as reducing energy use or adding renewable energy like solar, can qualify for a higher 504 debenture limit.
Best for: New builds and major renovations that include solar or significant energy-efficiency upgrades.
The USDA B&I guaranteed loan program supports businesses in eligible rural areas, including hotels. It can accommodate loan sizes above SBA limits.
Best for: Hotels in smaller towns and rural markets, especially larger loans.
For stabilized hotels and experienced owners, conventional financing from banks and credit unions can offer faster execution without government-program requirements.
Best for: Experienced owners with stabilized hotels who want speed and flexibility.
Loan Purposes
Buying an existing franchised hotel, including change-of-ownership PIPs.
Lowering your payment, extending your term or pulling out equity.
Ground-up hotel development with an approved brand.
Brand-required upgrades and property improvements.
Send us the basics and we’ll recommend the right structure for your hotel.
