Top SBA Lenders for Hotels & Motels
The hotel and motel industry presents unique opportunities for growth, but it also requires significant capital for property acquisition, renovations, and operations. SBA loans, particularly the SBA 504 loan, are an excellent option for financing these needs due to their favorable terms, lower down payments, and longer repayment periods. Below, we list the top SBA lenders for hotels and motels and provide insights into the best loan options available.
Top Hotel & Motel SBA Lenders
| Bank | Total Amount Funded | Count |
|---|---|---|
| GBank | $292,332,900 | 84 |
| Shoreham Bank | $87,198,000 | 34 |
| Open Bank | $57,467,000 | 17 |
| Hanover Community Bank | $52,791,000 | 17 |
| Readycap Lending, LLC | $52,110,700 | 26 |
| Bank of Hope | $45,362,200 | 17 |
| Millennium Bank | $45,010,700 | 16 |
| First Western SBLC, Inc | $28,016,000 | 16 |
| Peoples Bank | $26,481,400 | 12 |
| Commonwealth Business Bank | $22,020,000 | 7 |
| Enterprise Bank & Trust | $21,713,200 | 8 |
| United Midwest Savings Bank, National Association | $19,117,000 | 7 |
| First Chatham Bank | $16,531,200 | 7 |
| US Metro Bank | $16,024,000 | 8 |
| Mission Valley Bank | $15,675,600 | 5 |
Why SBA Loans Are Perfect for Hotels & Motels
The hospitality industry requires substantial investments in real estate, renovations, and operations to maintain competitiveness and ensure guest satisfaction. SBA loans are a fantastic way for hotel and motel owners to access the capital they need at competitive rates.
The SBA 504 loan is particularly well-suited for hotels and motels due to its low fixed interest rates and long repayment terms. The SBA 504 loan can be used to finance real estate purchases, renovations, and even large equipment needed for operations. Additionally, the SBA 7(a) loan offers flexibility for working capital, property improvement, or even acquiring an existing hotel or motel.
Best SBA Loans for Hotels & Motels
1. SBA 504 Loans
The SBA 504 loan is the preferred option for hoteliers looking to purchase, build, or renovate a property. This loan provides funding for up to 90% of the project cost, making it a great option for those looking to minimize their initial equity contribution.
Benefits of the SBA 504 Loan for Hotels & Motels
- Low Fixed Interest Rates: Typically lower than traditional commercial loans, offering stability over time.
- High Loan Amounts: SBA 504 loans can cover up to $5 million or more, depending on the project.
- Long Repayment Terms: Up to 25 years, which keeps monthly payments manageable.
2. SBA 7(a) Loans
The SBA 7(a) loan is another excellent option for hotels and motels, offering more flexibility than the 504 loan. It can be used for various purposes, including purchasing property, refinancing existing debt, funding working capital, or acquiring an existing hotel or motel.
Benefits of the SBA 7(a) Loan for Hotels & Motels
- Flexible Use of Funds: Can be used for real estate, working capital, renovations, and more.
- High Loan Amounts: Up to $5 million, suitable for medium to large-scale investments.
- Long Repayment Terms: Up to 25 years for real estate, providing manageable monthly payments.
Best SBA Lenders for Hotels & Motels Working Capital
Working capital is essential for managing the day-to-day operations of a hotel or motel, covering expenses such as payroll, utilities, and supplies. GBank and Shoreham Bank are highly recommended for their experience with SBA loans focused on working capital needs in the hospitality sector.
Best SBA Lenders for Hotels & Motels Real Estate Purchases
If you’re planning to purchase or build a new hotel or motel, Readycap Lending, LLC and Hanover Community Bank are among the top lenders for real estate financing. These lenders provide SBA 504 loans, which are ideal for acquiring new properties or undertaking major renovations.
Best SBA Lenders for Hotels & Motels Business Acquisition
Acquiring an existing hotel or motel can be a fast way to enter the hospitality market or expand your existing portfolio. GBank has a strong track record of providing SBA 7(a) loans for business acquisitions, making it a reliable choice for those looking to grow their hospitality business.
How to Apply for an SBA Hotel or Motel Loan
Applying for an SBA loan for your hotel or motel is a detailed process, but it can be simplified with the right preparation and guidance. Here’s how to get started:
- Assess Your Needs: Determine the funding amount you need—whether it’s for purchasing a property, expanding, or covering operational costs.
- Choose the Right Loan Type: Decide between an SBA 504 or 7(a) loan based on your specific requirements.
- Select an SBA Lender: Partner with a lender experienced in hospitality SBA loans. Choosing a knowledgeable lender can streamline the application process.
- Prepare Your Documentation: Gather financial statements, tax returns, property appraisals, and a comprehensive business plan.
- Submit Your Application: Work with your lender to ensure all paperwork is completed accurately and on time.
Why Choose GoSBA Loans?
GoSBA Loans specializes in helping hotel and motel owners secure the best SBA loans. We understand the unique challenges of the hospitality industry and have extensive experience in connecting borrowers with the right SBA lenders. Whether you’re looking for working capital, real estate funding, or to acquire an existing hotel, GoSBA Loans can assist you through every step.
Ready to Get Started?
Contact GoSBA Loans today to learn how we can help secure the best SBA loan for your hotel or motel. Visit gosbaloans.com or call 1-855-381-6448 to speak with a specialist.
