$1 Billion SBA Insider: How To Buy A Hotel With Just 15% Down | Carly Whitney E95
RSS Feed Carly Whitney is a Senior Vice President at Business Finance Capital, a certified development company, and in thirteen years there she has been across more than a thousand SBA transactions. By her own count, that adds up to roughly four billion dollars in sales and refinances, with just over a billion of it in SBA dollars. Her answer to how much a hotel buyer actually has to bring to the table is fifteen percent.
In this episode, Michael Russell and Carly break down the SBA 504 program from the ground up. Why a hotel counts as a special purpose property and shifts the standard 50-40-10 structure to 50-35-15. How one loan can cover the purchase and the property improvement plan together, financing up to 85% of total project cost. What the long-term fixed rate looked like at the time of recording, how the 504's ten-year prepayment penalty stacks up against the 7A's three-year, and where the 51% owner-occupancy rule actually bites. They also get into the 20% ownership threshold that triggers a personal guarantee and what that means for anyone raising capital, the $5 million SBA cap and how green improvements stack around it, the new citizenship rule that can disqualify an owner holding as little as 1%, and why a seller's tax returns are the hardest document to pry loose on a hotel deal.
If you are looking at your first hotel and the down payment is the thing standing in the way, this is the financing conversation to start with.
If you found value in this episode, take 30 seconds to leave us a review here. It helps more people find the podcast and keeps us bringing on great guests.
Connect with Michael on Instagram or LinkedIn.
Email Us at info@hotelinvestorplaybook.com
Visit the Hotel Investor Playbook Instagram
