Introduction to SBA Hotel Financing with Stay Express
SBA hotel loans refer to the financing offered through the USA Small Business Administration’s hotel loan programs. The loan amount can be used for the purpose of construction, buying a property, hotel acquisition, building improvements, purchase of machinery and equipment, as well as for gaining working capital for hotel business.
The funding for the loan does not come directly from the SBA itself. Rather, SBA has many approved lending partners which include local and national banks as well a non-bank lenders.
Two highly popular loan programs of SBA are – 504 and 7a, which are well suited to meet the common funding needs of a hotel business.
Some of the benefits of SBA loans are – capped interest rates, small and large loan amounts can be taken, longer repayment terms, easier terms and requirements compared to traditional loans.
Even though the benefits of SBA loans are numerous, there are some drawbacks as well. First of all SBA requires your hotel to be part of an SBA approved brand. If you check out the leading SBA approved hotel brands you may find that joining any of these brands can be a very difficult process.
The brands will have huge joining fees and other recurring charges, they will have many strict conditions, impose unreasonable PIPs which may cost a hotel thousands or even millions of dollars.
Stay Express is a relatively new entry into the hotel franchising scene. It has been started by people who are passionate about the hospitality industry and have many decades of experience. They understand the problems and requirements of hoteliers. The brand wants to make a mark by helping hotels grow their business.
As such Stay Express does not put unnecessary and burdensome demands upon its franchisee partners. Stay Express is SBA approved, yet it has very low joining fees and is a hassle-free brand.
It has assisted its partners in getting SBA approved loans for the growth of their business. Many hotels have joined and there are other hotels lined up to join. One of the primary reasons many hotels are showing interest in the brand is because of its easier policies and also because it has helped many hotels secure the SBA loan.