• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • About CCN
    • About Commercial Capital Network
    • Richard K. Newman, Founder
    • Hospitality Loan Application
    • Downloads
  • News
  • Email
  • Call 570-213-1903
  • LinkedIn
  • Feed

Inn Financing

  • Reviews-Clients
  • Prequalify
    • B&B / Inn Loan Prequalification
    • Prequalification Check List
    • Verified Financials Overview
  • Loans
    • Hospitality Loans
    • SBA 7a & 504 – Overviews
    • 401K Frequently Asked Questions
    • Loan Application
    • Downloads
  • Innkeeper Resources
    • FAQs of Aspiring Innkeeper
    • Articles for Aspiring Innkeepers
    • Tips for Innkeepers
    • Innkeeper Training Events
    • Inn / B & B Resources
    • Inn Partners and Bed & Breakfast Consultants
    • Bed & Breakfast Inns for Sale
  • Innkeeper Training
  • Inn Blogs

SBA Loan Overviews

SBA 7a Loan Program

Download Loan Application and Related Documents

The SBA 7a Program allows for financing of all types of business needs from purchasing real estate, fixed assets, working capital and business acquisitions.  The SBA 7(a) loan program highlights are:

  • Up to 85% Loan to Value (LTV)
  • Generally adjustable rates 2% to 2.75% over WSJ Prime
  • 5 Year Fixed Rate may be available
  • 25 Year Amortization
  • Fully Amortized Loans with NO  Balloons
  • Loans up to $5 million
  • Closings in as little as 45 to 60 days
  • Loans may be assumed, subject to approval
  • SBA Loan Guarantee Fee 3% of Loan Amount

Note:   The following SBA 7a example is based on rates as and available terms as of 3/20/2017.  Rates and program availability may vary depending on risk factors, changing commercial rates, regional pricing variations etc.

Example Loan – $1,000,000

  • Rate – 6.25%
  • Fixed – 5 Years
  • Amortization – 25 Years

Annual Principal & Interest – $79,793.64  

Closing Cost Estimate:

  • SBA Loan Guarantee Fee 3% – $30,000.00
  • Bank Attorney Fee – $4,500.00
  • Environmental – $1,500.00
  • SBA Packaging Fee – $2,500.00
  • Appraisal – $2,500 to $5,000
  • Title Insurance – $6,000 to $7,500

TOTAL CLOSING COSTS – $47,000 to $51,000

SBA 504

The SBA 504 Program provides a method to finance real estate expansion projects through long-term, fixed-rate financing.   The 504 is different from the 7(a) in that it is offered by the SBA in partnership with a participating lender (bank or non-bank).” The 504 loan program consists of two loans. The first loan and lien position is offered by an authorized lending institution and the second loan or second lien position is offered by the US SBA via the efforts of a certified development company (CDC).

504 eligible project costs include:

  • Land and building acquisition
  • Site improvements
  • Building improvements
  • Professional fees, including architect, appraisal, environmental
  • Other costs, including title insurance, survey, points and interest on interim loan
  • Machinery and equipment acquisition

The main advantages of the SBA 504 program are as follows:

  • Small equity injection, as little as 15% toward the total eligible project
  • Long-term financing is available, up to 25 years on loan 1 and up to 20 years on loan 2
  • Very favorable, fully amortizing fixed-rate pricing on loan 2 at market
  • Most closing costs are eligible for project financing
  • SBA 504 loans may be assumed

The SBA 504 loan program highlights are:

  • Up to 85% financing
  • Fully amortized loans with no balloons
  • 5 and 10 Year Fixed Rate
  • Terms to 25 years
  • Loans up to $15 million

Download Loan Application and Related Documents

Primary Sidebar

  • Conventional Financing
  • SBA Overviews
  • Downloads
    • Loan Application
    • Commercial Loan Application – Bed & Breakfast Inn
    • Business Debt Schedule
    • Rent Roll
  • 401K / IRA FAQs

What Clients Say . . .

"Rick made the loan process seamless.  He explained everything clearly and answered all of …

Read More

"Dear Rick, Dallas and I thank you so very much for your patience and professionalism in …

Read More

More Testimonials

Footer

Featured Bed & Breakfast Resources



BED & BREAKFAST INN ASSOCIATIONS

AIHP-logoAssn. of Lodging ProfessionalsMichigan Bed And Breakfast Association logoMichigan Bed & Breakfast Assn.

Oregon Bed and Breakfast Association logoOregon Bed & Breakfasts

Tips for Innkeepers
  • Press Releases
  • LinkedIn
  • Contact Rick by Email
  • Call 570-213-1903
Trusted Site Rapid SSL

Copyright © 2021 · Inn Financing & Consultants · Bed & Breakfast Inn Financing & Consultant · Hospitality & Resort Financing
Commercial Capital Network (CCN) · Log in