Funding Your Motel Expansion with an SBA 504 Loan
Anyone who travels will find that they need accommodations. For some, this means a 5-star resort. However, for a growing number of travelers, motels are the destination of choice. In fact, the motel industry generated almost $200 billion in 2018, growing at a rapid 4.4% each year between 2013 and 2018. This means that it could be the perfect time to grow or expand your motel business.
While the industry is booming, funding can still be a challenge for motel owners who want to expand their businesses. SBA 504 loans can provide the capital needed for some of the most significant financial hurdles you’ll face. With up to $5 million available, you are allowed to purchase real estate, construct buildings, improve the land, and even purchase equipment. You can also modernize existing motels and other hospitality-industry facilities.
Despite their many benefits, SBA 504 loans are not designed to cover every need a business might face. For instance, they cannot be used to finance working capital. So, if cash flow is going to be a concern, you can combine your 504 loan with a 7(a) loan, or take out a conventional business loan.
We’re here to help you get the commercial financing you need. Simply fill out the form below for a risk-free consultation and a free SBA loan quote!