In today’s market place the Small Business Administration – SBA 7(a) Loan is a great option for the first-time buyers as well as for experienced hoteliers because of its flexible loan with reasonable terms & down payment requirement. SBA 7(a) Loan Programs are the most preferred loan & your trusted ally for a hotel purchase or a hotel refinance
Benefits of SBA 7(a)
A quick recapitulation about the prominent characteristic of SBA 7(a) will help you make better business decision for the ones who are well versed with as well as for the ones who are newbie to hospitality industry .
In SBA 7(a) program the borrower is allowed to have high loan to value(LTV) i.e up-to 85% & a low down payment. The combination of high LTV & low down payment enables managers to enjoy higher cash flow.
The qualifications for eligibility for 7(a) loans include:
Business & owner requirements:
Eligible & Ineligible types of businesses:
Most businesses are eligible, except for the Real Estate, Lending Companies, Companies that engage in illegal activities.
Eligible business purposes:
The main purposes for purchasing land, building, equipment, machinery; long term & short term working capital; refinancing; purchasing of an existing business.