Knoxville Hotel Loans by Proactive Lending

To procure one of the sought-after Knoxville hotel loans, learn how to maneuver the procedure and put your strongest foot forward.

Starting a hotel business or growing an existing one is a significant undertaking. Almost everyone finds the industry’s many moving parts intimidating, and obtaining business financing is just one significant component. Because how exactly will you pay for everything, beyond the fundamentals of staffing logistics, design, marketing, and more? The key is to look for hotel financing in Knoxville. At Proactive Lending, we have extensive experience in hospitality financing. We’ve helped businesses big and small find the best loan for their hospitality project. But here’s something you need to know:

Do SBA lenders offer Knoxville Hotel Loans for Financing?

Lenders for the Small Business Administration (SBA) are typically financial organizations like banks or credit unions that provide sizeable loans with long repayment terms and competitive interest rates. You should have a clean credit history, solid financial standing, and a few years of experience managing your own business to be eligible. Furthermore, to get Knoxville Hotel Loans, you might need to give the lender some collateral. Additionally, the processing and funding of SBA and bank loans for businesses will take time. Here are some points you should know as a lender:

Key Takeaways

  • The SBA 7(a) loan is a popular choice to help with expenses because starting a hotel requires significant capital.
  • A new hotel can be built or purchased, or existing debt can be refinanced, among other uses for this loan.
  • To benefit from affordable financing for your small business, keep track of SBA 7(a) loan interest rates.
  • The maximum loan amount is $5 million, and there is no minimum. Up to 85% of this loan can be guaranteed by the SBA.
  • A comparable choice for a certified development Company is the SBA 504 loan.

The SBA 504/CDC Loan combines a loan from a bank lender with a non-profit Community Development Corporation (CDC) to create a long-term, low-interest loan. Knoxville hotel financing for borrowers who might otherwise find it difficult to obtain an SBA hotel loan may find it easier to access 504 loans thanks to this community development relationship. 

Knoxville Hotel Loans Terms for Hotel Owners

The maximum loan size under SBA 7(a) is $5 million. Depending on how much the loan is, as we discussed, the SBA will guarantee up to 85% of it. Loans on real estate and land that are used for either new construction or the purchase of existing structures have a maximum maturity of 25 years. Here, the most commonly asked question is “which is better, SBA 7(a) loans or 504 loans?”

Compared to the SBA 7(a) loan, the SBA 504:

  • is a larger loan, with a minimum of $125,000 and a maximum of $20 million;
  • has a fixed interest rate;
  • has a 20-year maturity rate for real estate and land; and
  • requires a 10% down payment from the borrower.

Typically, the SBA 504 loan used with a business loan from a traditional lender, like a bank or credit union, can be beneficial. The SBA can guarantee which is more advantageous to itself, the lender, and the borrower because the costs are divided among the loans.

Proactive Lending: The Best Knoxville Hotel Loans for Financing

The Proactive Lending Group is pleased to provide various innovative hotel financing options. The most popular forms of hotel financing typically come in various shapes and sizes, including conventional commercial bank loans, SBA 7(a) loans, SBA 504 loans, and USDA B&I loans. We do, however, have additional choices and channels for obtaining commercial hospitality financing. Call us if you’d like to speak with a knowledgeable lender right away!

Knoxville hotel financing for commercial property investors is something that we at Proactive Lending Group specialize in, from beginning to end. We not only understand the nuts and bolts of hospitality financing, but also the needs and concerns of commercial real estate investors.

Pro-Active Lending Group is proud to offer a number of creative solutions for hotel financing. For those unfamiliar, the most common kinds of hotel financing are generally available in various forms, including conventional commercial bank loans, SBA 7(a) loans, SBA 504 loans, and USDA B&I loans. However, we have other options and avenues to secure commercial hospitality financing … to speak with an experience lender, simply pick up the phone and give us a call today!



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