SBA

One key source of financing available today is through the government’s SBA 504 and 7a programs. Recent federal money has improved the SBA and they now offer more simplified applications and lower costs structures. Our experienced team has closed many SBA loans in recent years and we can bring the experience and advice needed to walk clients through the process. Loans are available up to 90% LTV on deals as large as $10 million.

An exciting new component of the new federal stimulus is the recent SBA announcement of a new energy efficient program that allows hotel owners to qualify for up to $4 million on the SBA portion (previously $2 million) of 504 loans by either reducing energy consumption by 10% or utilizing renewable energy. Fortunately, our professional’s broad hospitality experience can provide clients with the capabilities to effectively achieve this threshold at minimal expense. Our team includes a LEED accredited professional who can assist in these efforts and maximize returns.

Benefits of the 504 program include:

• Low down payment – required equity as low as 10%
• Closing and "soft costs" can be financed - allowing a 90% loan to cost transaction
• Second mortgage is fixed for 20 years with a below market interest rate - no balloon payment
• The first mortgage is typically a 25 year term allowing long-term amortization
• Multiple options for title and ownership giving client’s flexibility with tax benefits