SBA Loans for Hotels & Motels
30,612 SBA loans have funded hotels & motels nationwide, averaging $1.6M across 1,231 active SBA lenders, at an average note rate of 6.2%. SBA 7(a) loans up to $5M fund acquiring a hotel or motel and PIP and brand mandated renovations; SBA 504 loans cover owner occupied real estate and equipment with as little as 10% down. PeerSense reads this lending history and sources capital for a hotel.
Published: ·Last updated: ·By Ed Freeman, Capital Advisor. PeerSense
Source: SBA 7(a) and 504 loan records (NAICS 721110), 2000 to present.
30,612
SBA Loans Funded
$1.6M
Average Loan
6.2%
Avg Note Rate
22 yrs
Avg Term
1,231
Active Lenders
12.1%
Charge Off Rate (resolved loan basis)
What hotels & motels use SBA loans for
Where hotels & motels get SBA financing
| State | SBA Loans | Capital Deployed |
|---|---|---|
| California | 3,928 | $6.5B |
| Texas | 3,294 | $6.2B |
| Georgia | 1,619 | $3.1B |
| Florida | 1,349 | $2.6B |
| Washington | 1,068 | $2.0B |
Talk to PeerSense about SBA capital for a hotel.
Tell us your loan amount and use of funds. PeerSense sources capital for a hotel, anywhere in the US.
SBA 7(a) / 504, Hotels & Motels: The desk will reach out. No obligation.
How hotels & motels qualify for an SBA loan
SBA 7(a) loans are the most common path for hotels & motels financing acquiring a hotel or motel. They run up to $5M, fund up to 90% of a project, and amortize over 10 years for a business purchase or up to 25 years when real estate is included. SBA 504 loans pair a bank loan with a CDC debenture for owner occupied real estate and heavy equipment, typically at 10% down.
With 30,612 loans on record across 1,231 lenders and a 12.1% historical charge off rate, hotels & motels are a well understood credit to SBA lenders, but not every lender is active in this profession or comfortable with its deal structure. PeerSense reads the lending history and sources capital through a curated network, then stays with you through closing.