Refinance Motel with Conventional
Cashout Loan in Minnesota
America Best Value Inn
Thief River, MN
Many hotels in tertiary markets are only focused on the local community banks for financing. This often means that the hoteliers are at the mercy of the few local banks and miss the possibilities of better terms and more flexible structure of the regional or national banks. Additionally the hoteliers do not have enough leverage to negotiate for better terms if their span of search is the few local lenders. In this project for example, Scientific Capital was able to refinance the existing bank loan, release one of the guarantors which was a primary reason for the refinance, obtain funds for renovations, pay off an existing SBA 504 loan, consolidate lines of credit, and obtain working capital and fairly large cashout none of which would have been possible through the local community lenders.
One of the complexities of paying off an SBA 504 is the SBA’s nearly two-week window of time open during the month for pay offs making it essential to plan well ahead of time the closing schedule.