Banks and credit unions have limited capacity for special-use property debt and typically reserve that capacity for existing clients or higher-tier hotel assets, particularly when working with new clients. As a result, financing economy and midscale hotel brands such as Quality Inn and Suburban can be more challenging to secure through conventional non-SBA financing compared with high-scale hotels. In this transaction, our client was seeking to refinance the existing debt while taking significant cash out for external investments and business partner buy-out. 

Scientific Capital expanded its lender search and successfully placed the loan with one of our lending partners. The transaction provided approximately $3.8 million in cash out, a portion of which was used to facilitate the partner buy-out. This project demonstrates Scientific Capital’s commitment to find the best option for our clients. 

The final terms were highly attractive for a $6.5 million loan, with an interest rate just over 6.5%, 10-year term, and 25 year amortization.