Financing the Purchase and the PIP of an
Independent motel with SBA loan in Georgia
Scientific Capital arranges 1.4 million SBA 7(a) loan for the acquisition and PIP financing of the Augusta Budget Inn of Augusta, GA.
This is a 2nd motel acquired by the buyers and the timing of the closing and the quick approval was of essence. Like many other hotel acquisitions that a group of investors in a syndication buy a motel, this as well was acquired by 3 partners. With all the new regulations, an important change in the financing is the recent rigidity in verifying the sources of the funds for the down payment. Hoteliers have to prove that the money they are putting in is seasoned for 2 or 3 months. Even if a partner is receiving a gift from others, the friend or the family member offering the gift has to prove the seasonality of the money to be gifted by providing 2 or 3 statements showing that in the 3 months the amount to be gifted was in the account and the balance never dropped below or if it did and there were deposits in the account, the source of them should be verified for deposits over $3,000. It is important that hoteliers plan their acquisitions ahead of time and figure out the down payment structure 2 months ahead of time so that upon entering a contract and starting the financing, their money is showing seasonality