Financing a Hotel

with SBA(7a) loan

Comfort Inn & Suites
Toledo, OH

Scientific Capital saved another transaction after the buyer’s request for an SBA loan had been declined by multiple SBA lenders, leading the seller and the broker to refer the buyer to Scientific Capital. We then facilitated a $3 million SBA 7(a) loan at 80% loan-to-value including $300K for the renovations and the PIP.

The transaction presented several challenges, including the buyer’s limited hotel experience and background, the hotel’s pro forma-based stabilization versus the historically sufficient cash flow, and the sources of funds partially from Canada which made tracing the sources and seasonality, a strict requirement by the SBA, far more difficult and time-consuming.

What Our Client Thinks of Us

Comments from the client You are an awesome partner to work with on any deals, not just this one. I think I would not have done this without you, your guidance and support. Fantastic guidance and close monitoring of what needs to be done, and more than this, the patience and close follow-ups helped me a lot, especially with my busy work schedules. I really thank you for everything you’ve done and I do not need to go anywhere else for my future needs.

Sruthi Gujjula

Managing Member