Refinance and PIP of a Hotel with SBA 7(a) Loan in Arizona
Scientific Capital arranges a 2 million SBA 7a loan for the refinance of the Ramada Inn in Phoenix, Arizona. The project was financed at 66% Loan to Value (LTV) and included financing of the Property Improvement Plan required by the franchisor. The purpose of obtaining a refinance was to pay off private notes that were maturing in 2010 and carried high interest rates. The refinancing will significantly help the cash flow in this downturned economy.
The refinancing benefited from the ARRA Stimulus funds where the nearly 3% guarantee fee was waived. The Stimulus program is set to expire in September 2010 but requires Congress to allocate funds continuously.