SBA Hotel Loans Just Got Bigger: How Owners Access Up to $10 Million

What if the SBA's $5 million hotel loan limit doesn't actually limit you to $5 million? At LendingCon, SBA Regional Administrator Tyler Teresa explained how hotel owners now use the 7(a) and 504 programs together for as much as $10 million in total financing. Congress never raised the $5 million limit. The SBA found another route. Then Tyler dropped another number every hotel buyer should hear: 15%. Under the 504 program, hotel buyers contribute 15% toward the deal. Tyler also took me through an $8 million hotel acquisition and showed exactly where the 7(a) and 504 pieces fit. I spend plenty of time talking with hotel owners about the struggle to find capital that makes deals pencil. This conversation gave me a financing strategy I didn't know about, and I suspect plenty of hotel owners don't know about it either. If hotel acquisitions factor into your plans, Tyler's explanation deserves five minutes of your attention. Want the weekly roundup of news, videos, and what you might've missed from #NoVacancyNews? Text HOTEL to 66866.