When it is not feasible to obtain a conventional loan for a hotel, we turn to other programs, one of which is SBA 504. In this case, there were few negative factors that made this loan not palatable for conventional lenders. The buyer is from west coast and will not reside in the area and any regional bank will not have a chance to build relationship and upsell financial services not to mention the risk of having absentee owner operating the hotel. This Hampton was acquired in 2018 with PIP and renovation starting in 2019. However, with Covid hitting in 2020, the PIP completed at the end of 2021. With lack of sufficient historical cashflow, the conventional lender can only count on trailing 12 for sufficient cashflow which makes it a projection based financing. With such negatives, we often turn to other programs such as SBA 504, USDA, and others. In this project we opted to use SBA 504 green since the buyer already exhausted most of the 5 million allocation and with this program, one would get a fresh 5 million allocation for a new acquisition.