A Comparative Analysis of the SBA and USDA Small Business Loan Guarantee Programs

Abstract

ABSTRACT The last few years have been good to hotel investors in terms of the financing climate. The sources and amount of capital available for lending on hotel projects has increased. Franchiser conduit programs, insurance companies, local banks, nonbank lenders, seller financing, and venture capital have all been on the upswing. However, the small-hotel owner has always been perceived to be at a disadvantage when it comes to procuring funds for hotel development or acquisition. Commercial lenders are hesitant to make long-term loans on projects that have insufficient collateral, require longer-than-normal repayment terms, or have been in business for less than three years.