In financing hotels, even a single negative major factor poses a challenge. In this project, we had multiple negative factors: 

1. A foreign investor/buyer who was trying to migrate to America through an investment in the hospitality industry but with no direct experience in hospitality industry
2. An economy-tier Days Inn motel that did not cash flow for the requested loan amount of $5 million and had to be financed on a proforma basis
3. Open city cases that had to be examined and accepted by the lender to remain in effect
4. A larger motel with 152 rooms with both interior and exterior rooms (Lenders are generally in favor of limited service under 100 room)
5. A buyer with no more than 15% down payment

This combination of negative factors meant 99% of the most aggressive SBA lenders showed no interest in financing this hotel acquisition. What made it possible was cashflow projection with fact based assumptions and evidence to convince a lender that the motel will in fact cashflow sufficiently once the buyer takes over. This $5 million SBA 7(a) loan was priced at PRIME + 1.25% at 85% Loan to Value.