SBA 7(a) rules require two years of seasoning if the hotel is purchased through seller-carry financing. However, if the hotel is leased and the title is not transferred (remains under the seller), the lessee can exercise the option to purchase at any time after the lease agreement is signed. In this case, the hotel was leased and the lessee was trying to exercise the option to purchase at $4.65 million but due to conversion from Springhill Suites to Comfort Suites, the lessee/buyer needed $600K of renovations/PIP funds. Although this acquisition was projection based, Scientific Capital was able to assist the buyer in preparing a highly reliable proforma and reach 85% Loan to Value of the total acquisition/PIP/Cost for an SBA 7(a) loan of $4.59 million. The deposit placed by the lessee to lease the property is considered as part of the equity injection of 15%.