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$1.1M SBA 7(a) Financing for Boutique Hotel Acquisition & Renovation

Introduction

Elevating independent hospitality with strategic SBA 7(a) execution. Cornovus Capital structured a $1.1 million SBA 7(a) loan to finance the acquisition and repositioning of a 65-key boutique limited-service hotel located in a high-visibility corridor near Indianapolis. Formerly absentee-owned and under-managed, the property showed strong fundamentals—proximity to interstate routes, downtown Indianapolis, the airport, and major sports and entertainment venues—but required capital to unlock its full potential.

The hotel was acquired by an experienced hospitality group seeking to reposition the asset while maintaining its independent status. The financing package included funding for the acquisition, a $132,000 owner-managed Property Improvement Plan (PIP), CapEx upgrades, FF&E, working capital for operational continuity, and closing costs. Cornovus Capital delivered a 25-year fully amortizing SBA 7(a) structure that ensured the borrower could focus on renovations, operational efficiency, and revenue growth without refinancing risk.

Challenge

Navigating brand independence with capital precision.

  • Funding the acquisition of a non-flagged, independently operated property with deferred maintenance and no brand affiliation.
  • Covering a substantial PIP and capital expenditures while preserving borrower liquidity.
  • Ensuring operational cash flow during renovations, while transitioning management and implementing cost controls.
  • Positioning the hotel for future revenue optimization through OTA integration and direct booking strategies.

Solution

When the brand is yours, the financing must be too. Cornovus Capital developed a tailored SBA 7(a) financing structure that addressed both the immediate needs of the acquisition and the long-term goals of the ownership group.

  • Acquisition financing designed to close on schedule and meet SBA underwriting standards for independent properties
  • $132,000 PIP funding for interior and exterior improvements, including flooring, bathrooms, paint, signage, and guestroom enhancements
  • CapEx and FF&E funding to address utility inefficiencies and upgrade aged systems
  • Working capital to support staffing, operations, and marketing during the transition period
  • Fully amortizing 25-year loan structure, minimizing monthly payments and enhancing long-term affordability

This structure allowed the borrower to retain full ownership and operational control while avoiding high-cost bridge or mezzanine debt.

Results

Independent hospitality. Institutional results.

  • Acquisition closed successfully with full SBA 7(a) compliance and lender engagement
  • Renovations launched immediately post-closing with strong owner oversight, targeting early 2022 completion
  • The borrower leveraged OTA and digital marketing tools for revenue lift, having previously relied only on direct walk-ins
  • Utility savings were achieved within the first months of ownership due to improved systems and cost controls
  • Ownership is now positioned for significant RevPAR growth, with future flexibility for soft-branding or boutique repositioning

About Cornovus Capital

With over 60 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability.

Our expertise spans SBA 7(a) and 504 loans, CMBS and LifeCo financing, private capital solutions, and structured debt strategies. By focusing on certainty of execution and closing assurance, we guide businesses and investors through complex financial landscapes, securing funding tailored to their long-term objectives.

Why Partner with Cornovus Capital?

At Cornovus Capital, we understand that complex transactions require sophisticated financing solutions. Whether repurposing commercial assets, structuring high-leverage debt, or integrating municipal incentives, we deliver capital strategies designed for certainty and efficiency.

What Sets Us Apart?

  • Advisory expertise in adaptive reuse, commercial redevelopment, and business acquisitions
    We have a strong history of structuring financing for property repositioning, urban infill projects, mixed-use developments, and real estate acquisitions that support business expansion and operational stability.
  • Innovative capital structuring
    Our financing solutions include non-recourse construction loans, Mini-Perm transitions, and TIF-backed capital stacks.
  • Proven track record across diverse transactions
    Over the years, we have facilitated financing for a wide range of businesses, developers, and real estate investors, helping them secure the capital needed to grow and succeed.
  • End-to-end capital advisory and execution
    From initial underwriting to securing financing, we provide comprehensive transaction support to ensure seamless execution and certainty of funding.

Contact Cornovus Capital

For businesses seeking flexible financing solutions to support expansion, acquisition, or working capital needs, Cornovus Capital delivers expertise, efficiency, and certainty.

📧 [email protected]
📞 513-653-4246
🌐 CornovusCapital.com

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