Irvine, CA, August 04, 2011 --(PR.com
)-- Scientific Capital Group arranges a 4.1 MM SBA 7a loan for the refinance of an independent 185 room hotel in Amarillo, Texas. The project was financed through an FDIC lender at 68% Loan to Value (LTV) with the combined LTV of 75% including the seller carry.
Hotel financing has remained anemic in 2011. With the expiration of the Stimulus bill’s 90% guarantee program in December of last year, the national lenders who had dared to increase their volume of hospitality assets have pulled back to limit their exposure and to balance their portfolio concentration. The suspicion of a mid-year double dip recession didn’t help either as lenders decided to continue their cautious approach for the balance of 2011. The USDA budget drop to pre-Stimulus levels leaving USDA out of funds and the delayed and lethargic adoption of the unpopular SBA 504 First Mortgage Pool program have further narrowed the options for the mid-size hotel loans. Financing larger and dated independent hotels with larger loan sizes located outside of the major metro areas particularly with absentee owners is considerably more difficult as was the case for the subject hotel taking months to complete. A methodical and professional approach to financing is the key to success in this credit market.
Scientific Capital Group, Inc. (www.scicap.com) is a hotel financing advisory and brokerage company established in 2003 in Irvine, California offering services throughout the 50 states. For more information, please contact Ramin Mostaan at (949) 477-5000 or email at firstname.lastname@example.org.