Using the SBA 7a Loan Program to Finance a Boutique Motel Acquisition

Using the SBA 7a Loan Program to Finance a Boutique Motel Acquisition

I am looking to purchase a boutique motel which needs a major renovation. The occupancy is low and the older couple who own the place don’t keep good records. Is this something that SBA might still look at with low in-place cash flow?

Thanks,
Missy

Timestamps
[00:19] Is there enough cash flow to cover the debt service requirements?
[00:52] You can do a projection based loan on an SBA 7a
[01:05] Using projection based loans for boutique motels
[01:27] Do you have experience running in hospitality?
[01:45] Include rehab, operating and working capital
[02:11] Other things to consider for this type of deal
[02:48] The SBA 7a is the best product for this type of deal; three-year prepayment penalty

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