SBA Loan for Hotels
At Mercantile Capital Corporation we specialize in providing hotel loans for hospitality small business owners. By taking advantage of the SBA 504 loan, hotel owners are able to limit their required equity contribution to preserve their liquid assets for working capital and future projects. With the 504 loan, in most scenarios we are able to provide financing of up to 80% of the eligible project costs. Our hospitality borrowers also benefit from below-market, longer-term fixed interest rates than with most conventional loans.
Ability to Close Hotel Loans
With our extensive experience in hotel financing (having closed over 80 SBA 504 hotel loans) we will guide you through every step of the financing process. Having done this for 15 years now, we know exactly what needs to be done from the beginning of the lending process all the way through closing and beyond. Our team of hospitality experts has worked with virtually every flag and property type and since we have a small business mentality like you, we’re also pretty nimble in successfully working through any challenges that we might encounter along the way.
In the past several years demand for new construction or renovation of existing properties has increased significantly, especially in the hospitality industry. Over three quarters of all of the hotels loans we’ve closed since 2014 have included significant renovations (PIP) or were ground-up construction projects. In today’s lending environment, it may be difficult to obtain a loan to construct a hotel as many conventional lenders are not comfortable with construction and/ or don’t understand this industry, but we have both the expertise and capacity to navigate through the construction process with you or your clients.