Insider: SBA 504 Loan Program Levels Playing Field for Small Hoteliers

By Christopher G. Hurn, President & CEO, Mercantile Commercial Capital

Mr. Christopher G. Hurn

My first article for the Hotel Business Review is entitled “SBA 504 Loan Program Levels Playing Field for Small Hoteliers” which covers one of the best-kept secrets in hotel financing for small and mid-size businesses.  The Small Business Administration’s 504 loan program has helped hundreds of hoteliers to acquire and develop their own facilities, yet many hotel operators remain unaware of the program and exclusively turn to conventional commercial financing when investing in their own properties.   

With the growing costs of commercial real estate and construction, the SBA 504 loan program is likely to play an even larger role in the future of hotel financing for small owner/operators.  The article covers the basic information about the program and how it works for hotel businesses, which are able to use it to obtain up to 85 percent financing at fixed below-market rates that are only available through the SBA.   

The information in this article and the SBA 504 program can be very helpful to small and mid-size hoteliers across the country, and I look forward to any feedback or questions that readers may have. 

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Sincerely, 

Christopher G. Hurn

President & CEO

Mercantile Commercial Capital

407-786-5040

churn@mercantilecc.com