USDA B&I loans for hotels have become harder to fund specially for loans of over 5 million. Generally, the level of difficulty relates to two major factors, the funds availability for a state and the scoring of the project.

Each state has an amount of allocation from the USDA which the state receives in fall of each year when the government funds the program. The state scores each hotel loan according to the USDA guidelines. Unfortunately, the hotels in general score lower. Some states have higher budget allocation and fund more of the loans themselves. Some others may have lower budget or may have larger loans funded in a given year and run out faster and have to rely on the national fund. It is preferred to benefit from statewide funds since once the project is approved, the state can go ahead and fund. If the state is out of funds, the loan is sent to the national office for funding. If the national funds are out, the project is queued until fall when the government is funded. Once the loan is queued it gets funded when all other loans with higher score are funded and it is not based on first come first funded policy.

The advantages of this program however is that as opposed to the SBA program, it does not require owner to operate and does not have a maximum allocation such as the five million dollar allocation by the SBA per guarantor. As such the program allows the borrower to hire a management company and to obtain as many USDA loans as the borrower wishes.