$4.2M SBA Refinance for Choice Hotels Franchise
Introduction
$4.2M refinance fuels Choice Hotels franchise repositioning. Cornovus Capital arranged $4.2 million in SBA 7(a) financing to refinance a 110-room Choice Hotels franchise. The transaction provided long-term debt consolidation, funded brand-mandated PIP improvements, and added working capital to support operations, staffing, and marketing. By replacing short-term liabilities and boosting liquidity, the hotel is now positioned to drive higher revenue and long-term stability.
Challenge
Debt complexity, renovation deadlines, and lender hesitation. The borrower, an experienced hotel operator, faced a critical need to consolidate layered debt obligations, complete brand-required PIP renovations, and stabilize cash flow amid tightening hospitality lending standards.
- Multiple short-term loans created administrative burden and restricted reinvestment capacity
- PIP deadline imposed by brand requirements created timeline pressure
- Traditional lenders were hesitant due to operational complexity and brand compliance costs
A time-sensitive, comprehensive refinancing solution was required to preserve brand alignment and future revenue potential.
Solution
SBA 7(a) structure with long-term amortization, PIP funding, and working capital. Cornovus Capital delivered a customized financing package built around a fully amortizing 25-year SBA 7(a) loan. This structure allowed the borrower to:
- Refinance and consolidate multiple debt facilities into one stable, long-term loan
- Fully fund all required PIP renovations within the loan structure
- Access additional working capital to support operations and growth
The underwriting model was based on stabilized post-renovation performance, allowing the lender to underwrite confidently. Cornovus aligned loan proceeds with renovation schedules and revenue projections, creating a phased draw strategy to preserve liquidity throughout the transition.
Results
Liquidity, compliance, and repositioning success. The refinance created immediate operational relief while unlocking future value. With a stronger balance sheet, refreshed rooms, and strategic reinvestments underway, the hotel is now equipped to compete more effectively and capture long-term market share.
- $4.2 million SBA 7(a) loan closed on time and in full
- 100% of PIP renovations funded and completed under brand compliance
- Working capital infused to support staffing, marketing, and guest experience initiatives
- Multiple short-term debts consolidated into a single long-term amortization
- Asset repositioned for growth, improved occupancy, and long-term revenue gains
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 you’re acquiring a business, buying out a partner, expanding operations, or combining real estate into a growth plan—we deliver capital strategies designed for certainty and efficiency.
What Sets Us Apart?
• Advisory expertise across business stages and sectors: We structure financing for acquisitions, expansions, partner buyouts, and practice ownership transitions.
• Innovative capital structuring: We integrate seller notes, working capital, CapEx, and goodwill financing into efficient, customized capital stacks.
• Lender alignment and competitive terms: We match each transaction with lenders who understand your industry—ensuring smooth approvals and favorable terms.
• End-to-end execution and advisory support: From deal modeling and loan packaging to lender communication and closing, we manage the entire process to ensure successful outcomes.
For business owners, professionals, and entrepreneurs seeking flexible SBA financing, Cornovus Capital delivers strategic insight, execution certainty, and long-term support.
Contact Cornovus Capital
At Cornovus Capital, we simplify the financing process with tailored solutions, competitive loan terms, and expert advice. Whether you’re acquiring, refinancing, or developing a property, we’re here to help you succeed.
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📞 513-653-4246
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