Hotel Financing                                                        Call 423-227-6627

 Conventional Loans

HFC offers up to 65% Loan-to-Value and up to 55% "cash out" Loan-to-Value on Hotels through our conventional loan program. Approval is quick and streamlined to expedite the process to approval and funding.

• Rates are extremely competitive and fees are minimized for your benefit
• Loan to Value is up to 65% of appraised value
• Cash-out up to 55% of appraisal value
• Closing cost are much less than under an SBA Loan Program
• We offer 15 and 25 year terms to meet your specific needs.
• Minimum is $1.5 million
• Rates fixed and floating

SBA Lending Programs for Hotels

There are 2 types of governmental SBA loans available. First is the 7a program for financing of $3 million or less. The second is the 504 program for purchases between $1 million to $6 million. Each have its strengths and specific requirements.

Under the 7a loan the ability of repayment from the cash flow of the business is a primary consideration in the SBA loan decision process but good character, management capability, collateral, and owner's equity contribution are also important considerations. All owners of 20 percent or more are required to personally guarantee SBA loans.

Typically, a 504 loan includes a loan secured with a senior lien covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC/SBA covering up to 35% percent of the cost, and a contribution of at least 15% percent equity from the small business being helped.

Advantages of SBA Loans

• Smallest down-payment from borrower
• Very Low Interest Rates on CDC/SBA Loan
• Rates can be fixed or floating
• Prepayment options
• Fully assumable loans

Private Equity Finance

• Now available for amounts in excess of $10 million
• Upper midscale hotels