Scientific Capital

Financing of a Hotel with large USDA B&I Loan for

Independent Hotel in Missouri

Grand Plaza Hotel
Branson, MO

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.

What Our Client Thinks of Us

We were referred to this client/buyer through Southeast International Hotel Brokers. Here is the review from both the client and from the Southeast International Hotel Brokers:

Thank you Very much Ramin for working hard for this Loan. It was a good experience. You were ahead of every process and knew what is required to close this loan. Sometimes we felt it is too much but now we realize that it was needed to complete the project. We will definitely do future business with you.
Murad Bhatwani
Managing Member
Ramin: Thank you so very much for your help with the closing of the Grand Plaza Hotel in Branson, Missouri. I first worked with you on the closing of the Quality Inn in Platte City, Missouri and was extremely impressed. When we were in need of referring a lender to our client, you were the first person I thought of. The fact that you are on top of all things associated with the transaction and kept everyone in the loop was a big part of the reason that this purchase was closed! Your professional expertise and ability to solve problems is quite amazing. I have been in this business for over 30 years and can say you are one in a million. I look forward to working with you and recommending you to our customers for many years to come! Thanks again Ramin. You’re the best!!!
Beth Pendarvis
Southeast International Hotel Brokers

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