Can an SBA 7(a) boutique hotel loan fund both acquisition and renovations?

Yes. SBA 7(a) loans can be structured to fund hotel acquisition and eligible renovation costs, including FF&E and working capital, subject to lender underwriting and program requirements.

Is franchise affiliation required for SBA 7(a) hotel financing?

No. Independent and boutique hotels can qualify for SBA 7(a) financing when cash flow, sponsor experience, and project scope meet SBA and lender underwriting standards.

Does Cornovus Capital act as a direct lender?

No. Cornovus Capital operates as an advisory firm and arranges financing through third-party lenders, coordinating underwriting, diligence, and closing execution.

$1.1 MM SBA 7(a) Loan | Boutique Hotel Acquisition & Renovation

Renovation Funding • Liquidity Preservation • Execution Certainty

SBA 7(a) boutique hotel loan overview

SBA 7(a) boutique hotel loan structured for acquisition and renovation under one coordinated facility. Cornovus Capital arranged $1.1 million in SBA 7(a) financing for the acquisition and renovation of a 45-key boutique limited-service hotel near Indianapolis. This execution consolidated acquisition, renovation, FF&E, and working capital into one long-term structure—preserving liquidity while enabling rapid physical and operational improvements.

The borrower, an experienced hotel owner-operator, required an efficient capital solution to modernize the asset and restore market competitiveness. Cornovus Capital coordinated underwriting, diligence, and lender execution to support a streamlined closing timeline and a clear path to stabilization.

Challenge

Coordinating acquisition funding, renovations, and liquidity preservation for an independent boutique hotel. The asset required modernization and operational upgrades without franchise cost-sharing or procurement support, while maintaining sufficient working capital through the renovation period.

Integrating acquisition and renovation uses into one SBA facility
Funding FF&E and targeted property improvements while operations continued
Preserving cash reserves for staffing, marketing, and stabilization
Coordinating third-party reports and lender diligence under timeline pressure

Solution

SBA 7(a) structure designed to fund acquisition, renovation, and working capital. Cornovus Capital structured an SBA 7(a) facility to consolidate acquisition and eligible improvement costs, including FF&E and operating liquidity, under one fully amortizing loan.

$1.1 million SBA 7(a) financing package
Integrated acquisition + renovation + FF&E + working capital
Underwriting and diligence coordinated to support closing execution
Structure designed to preserve liquidity through stabilization

Results

Execution-focused closing and immediate post-close repositioning. The financing enabled the borrower to close, initiate upgrades, and pursue stabilization with preserved working capital and a long-term SBA structure aligned with the business plan.

Acquisition and renovation funded under one SBA 7(a) facility
Upgrades initiated immediately after closing
Liquidity preserved for operations and ramp-up
Asset positioned for improved competitiveness and long-term value

Related capital programs

Explore additional hotel acquisition, renovation, and refinance options: SBA 7(a) program, SBA 7(a) request, SBA 504 program, SBA 504 request, Bridge program, Bridge request, CMBS program, CMBS request, LifeCo program, and LifeCo request.

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About Cornovus Capital

With over 70 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 across multiple market cycles.

Our expertise spans CMBS and LifeCo financing, private capital solutions, structured debt strategies, SBA 7(a) and 504 loans. By focusing on certainty of execution, disciplined underwriting, and closing assurance, we guide businesses and investors through complex capital markets environments, securing financing aligned with long-term ownership and investment objectives.

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Exploring financing options for commercial real estate or business finance? Cornovus Capital delivers institutional execution — combining underwriting precision, credit modeling, and lender coordination to ensure transparency, speed, and certainty from term sheet to closing. Cornovus Capital delivers structured solutions, execution precision, and efficiency from application to closing.

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