SBA 7A LOANS
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THE SMALL BUSINESS ADMINISTRATION - SBA 7A LOAN is the loan most commonly used for a hotel purchase, refinance, or construction in today's marketplace. Because of it's flexability, great terms, and low down payment requirements, the SBA 7A Loan is a great option for first-time buyers or experienced hoteliers.
A typical SBA 7A Hotel Loan includes:
- Maximum loan amount of $5,000,000
- Down payment as low at 15%
- Interest Rates tied to the Wall Street Journal Prime Rate Index (3.25% as of 7/21) + a margin no greater than 1.50-2.50%
- Term of 25 years with 25 year amortization (fully amortizing loan)
- Low prepayment penalty of 5% for Year 1, 3% for Year 2, and 1% for Year 3. No penalty after Year 3.
- Hotel Purchase: Down payments as low at 15%
- Hotel Refinance: Minimum of 15% existing equity in the property (maximum LTV of 85%)
- FICO minimum of 640
- First-time buyers are acceptable
- Exterior hotels are acceptable
- Independent hotels are acceptable
- Nationwide lending in all markets
SPEAK TO A FARMERS STATE BANK LENDING EXPERT TODAY!
Phone: (877) 850-3156 | Email: [email protected]