There is less appetite for our national lenders to fund smaller loans. However, for strong projects, we do consider loans below 3 million

The determination of the Loan to Value is dependent mostly on the program we use, the market hotel is located in, and the sponsorship

This is the projected DSCR and is supported by the feasibility study and the appraisal

Upon signing of the Letter of Intent issued by our lenders, the borrowers will send in a good faith deposit to our lender (no fee is collected by Scientific Capital). The Lender uses this deposit to order the third party reports such as the appraisal and the Phase I report. Any balance left from this deposit will be applied to the closing costs. This deposit will generally appear on the closing statement

The amortization is dependent on the loan program used and the market the hotel is located in. For example, if SBA 7(a) is used, the amortization is 25 and if conventional loans are used, the amortization may vary from 15 to 25

The prepay depends on the program used

The costs below are general costs we would expect under any program. The program specific costs such as lender points are estimated when the loan program used to finance the hotel construction is determined.

• Lender processing fee: 1K to 4K
• Appraisal and the review: 4K to 6K
• Environmental Phase I report: 2K
• Lender legal fees: 4K to 7K (only if lender uses outside closing attorney)
• Misc such as credit reports, tax services, UCC search, etc.: $500 to 1K