The SBA only allows $5,000,000 in total SBA loans to each individual borrower. The SBA will only count loan dollars against this total availability of $5,000,000 if you personally guaranty the loan. The SBA only requires that an individual personally guaranty the loan if they own at least 20% or more of the new business. These three simple facts go a long way when getting your next loan approved and your ability to get future SBA loans and buy additional hotel properties. An excellent loan structure can help safeguard your loan approval and future SBA loan allotment. For example, on several occasions we have set up loan structures where the partners that will not be involved in the daily operations and are merely capital investors are set up with a 19% ownership of the new business and are therefore not required by the SBA and bank to be on the loan as personal guarantors. Thus, these 19% owners can still be part of the new business getting the loan and can provide the capital injection to help buy the property yet the loan that the new business gets will not count against their own personal $5,000,000 SBA loan allotment because they owned less than 20% of the business and were not required to personally guaranty the loan. A well structured loan is crucial and usually is a big determinant if a loan can be approved or not. Also, the loan structure can have a huge impact on a buyers future personal SBA loan allotment. At HBC, because of our excellent underwriting backgrounds we specialize in loan structuring. The SBA loan structure usually is the head cornerstone of obtaining your loan approval.

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