This loan was structured through SBA 504 with 50% of the loan offered by a bank and 30% by the SBA. The total cost of the acquisition included the PIP (Property Improvement Plan) of over half million and the other closing costs. A challenge we faced in financing this hotel was that the IHG’s 2013 version of the franchise agreement was not approved by the SBA causing confusion and delay. The IHG is no longer offering a “Statement of No Change” which is the form expected by the SBA local offices (The CDCs) to process the loan. Another hurdle was the arrangement of the gurantors and the SBA’s requirement for the corporate gurantee from any other affiliates in which the guarantors own 50% or more. In general, SBA has become a financing vehicle used in a capacity far beyond what was originally inteneded and the mushrooming of the SBA rules and regulations in the past few years and the enforcement of these rules have made SBA financing confusing and cumbersome.