A Flexible Financing Solution for Hotel Owners
SBA 7(a) loans are one of the most versatile financing options available for hotel owners and investors. Whether you’re acquiring a property, refinancing existing debt, or funding improvements, this program allows you to structure your deal with greater flexibility and efficiency.
Key benefits:
-
Lower down payment requirements compared to conventional loans
-
Long-term, fully amortized repayment structure
-
Flexible use of funds beyond just real estate
-
Ideal for owner-operators and growing hotel portfolios
What Can SBA 7(a) Hotel Loans Be Used For?
-
Hotel Acquisition
Purchase flagged or independent hotel properties
-
Refinance
Replace existing debt with improved terms
-
Renovation & PIP
Fund upgrades, improvements, and brand-required PIPs
-
Partner Buyouts
Restructure ownership and buy out partners
-
Construction & Expansion
Support development and property repositioning
-
Debt Consolidation
Streamline qualified business-related obligations
SBA 7(a) Loan Program Overview
-
Loan Amount:
Up to $5,000,000
-
Term:
Up to 25 years, fully amortized
-
Leverage:
Up to ~80–90% depending on deal structure
-
DSCR:
Typically 1.25x or higher
-
Closing Timeline:
Approx. 45–60 days
-
Prepayment:
Declining penalty (first 3 years)
* Loan structure and terms vary based on borrower profile, property performance, and deal specifics.
Built for Owner-Operators Who Want Flexibility
Unlike many traditional loan programs, SBA 7(a) financing allows you to fund more than just the real estate. This makes it especially valuable for hotel owners who need capital for improvements, operational costs, or repositioning strategies.
Key Advantages:
-
Finance FF&E, PIP, and operational needs
-
Combine business + real estate financing into one structure
-
Access capital without relying solely on local banks
-
Nationwide lending options
What to Know Before Applying
SBA 7(a) loans are designed for qualified borrowers who are actively involved in the operation of the hotel.
Typical Requirements:
At least 51% U.S. ownership (citizen or permanent resident)
Personal guarantee required for 20%+ ownership
Strong credit and management experience preferred
Demonstrated ability to meet debt service requirements
Is SBA 7(a) Right for Your Deal?
While SBA 7(a) loans are highly flexible, they are not ideal for every situation.
This program may not be suitable if:
-
You are a passive investor with no operational involvement
-
You are seeking unrestricted cash-out
-
The use of funds is not directly tied to the hotel business
* If SBA isn’t the right fit, we’ll help guide you toward better financing options.
Our SBA Loan Process
Submit Your Deal
Share your hotel details and financing goal
Structure & Analyze
We evaluate your deal and identify the best loan structure
Receive Terms
Get clear financing options tailored to your deal
Close with Confidence
We guide you through the process to funding
Trusted by Hotel Owners Nationwide
We were struggling to secure financing for a hotel acquisition, but their team structured a deal that worked when others couldn’t. The process was smooth, communication was constant, and we closed faster than expected. Highly recommend for any hotel investor.
Northern California
What stood out most was their speed and expertise. They understood our deal immediately and presented multiple financing options within days. We closed in under 60 days and couldn’t be happier with the terms.
Texas
They helped us refinance our property and pull out capital for expansion. The entire experience felt strategic, not transactional. You can tell they specialize in hotels—they know how to get deals done.
Florida
