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SBA Hotel Financing in Dallas

SBA hotel financing Dallas borrowers rely on starts with tailored capital strategy. At Cornovus Capital, we structure SBA 7(a) and 504 hotel financing for business owners, property investors, and developers acquiring, refinancing, or renovating hotel assets in the Dallas metro. Whether you’re purchasing a flagged franchise or an independent property, our capital advisory expertise ensures certainty of execution and long-term financial success.

SBA 7(a) Financing Overview

SBA 7(a) loans are versatile and well-suited for transactions involving business goodwill, working capital, FF&E, and full acquisitions that may or may not include real estate.

  • Loan Amounts: Up to $5 million.
  • Equity Requirement: Minimum 10 percent (may include seller standby for partial equity).
  • Use of Funds: Business acquisition, working capital, FF&E, debt refinance, real estate.
  • Terms: Up to 25 years for real estate; 10 years for business-only.
  • Favorability: Fully amortizing, no balloon, prepayable without penalty after 3-years.
  • Speed: Faster than 504; can be structured with limited third-party involvement.

Best used for:

  • Business acquisitions with or without real estate.
  • Transactions requiring working capital.
  • Roll-up strategies and partner buyouts.
  • Refinancing existing debt (must show cash flow benefit per SBA SOP).

SBA 504 Financing Overview

SBA 504 loans are structured for real estate-dominant transactions and capital-intensive projects requiring longer-term fixed-rate debt.

  • Loan Amounts: No absolute cap (typically used in $5 million to $15 million+ project sizes).
  • Equity Requirement: 10 to 15 percent depending on project type.
  • Use of Funds: CRE acquisition, ground-up construction, major renovations (no working capital).
  • Structure: 50 percent bank (senior loan), 40 percent SBA (CDC), 10 to 15 percent borrower.
  • Terms: Up to 25-years fixed on SBA portion; variable or fixed senior component.
  • Favorability: Long-term fixed-rate SBA debenture; high leverage on stabilized CRE.

Best used for:

  • Hotel or flagged asset acquisition or renovation.
  • Owner-occupied real estate with major buildout.
  • Ground-up construction projects.
  • Large CRE expansions needing long-term fixed-rate structure.
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