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What Hotels Need to Know About SBA Opportunities

Originally published on Hotel Management

Financing is still available for hotel projects—for those who know where to look for it. The U.S. government, through the Small Business Administration and the Department of Agriculture, is an option for hoteliers who are in the market for a loan, and can offer some notable opportunities for hoteliers. 

recent webinar, sponsored by Liberty SBF, discussed the value propositions of SBA programs and what sets them apart from other types of financing. Moderated by Elaine Simon, senior managing editor of Hotel Management, the panel was comprised of Alex Cohen, CEO and co-founder of Liberty SBF; and Greg Porter, SVP of capital markets, HREC Investment Advisors.

Banks, CMBS and Debt Financing

The state of the hotel finance market is improving, Porter said, noting that the hotel finance market in 2020 was “pretty much shuttered.” Borrowers, he said, were negotiating forbearances, and when they needed to find a new lender, they were paying a 9 percent rate—“if they could find that. So we’re definitely in a better [position] today. Many lenders that were active in [2019] have returned to the market.” 

But it isn’t all smooth sailing. “Most bank lenders are looking to reduce their hotel exposure, not add to it,” Porter said. Some bank lenders will finance hotels—“conservatively”—for existing clients, he noted, and “a small handful” of bank lenders are writing conventional loans for new borrowers. But these are few and far between: “If you have a loan request in your market, you’re going to local or regional banks,” Porter said. “If you go to 20 lenders, you might find one or two that are offering conventional financing.” Borrowers for full-recourse loans could expect rates in the 4 percent range with 50 percent to 65 percent leverage and 25-year amortization.  

Porter said commercial mortgage-backed securities lenders are “definitely back” for hotels that are “well flagged, well positioned and have strong trailing-12 cash flows. Rates for CMBS right now or in the “high fours to low fives,” he added. CMBS loans can be nonrecourse, and owners of newer hotels can secure a 30-year amortization. 

Debt funds, meanwhile, are available in three- to five-year terms with nonrecourse bridge financing. “That market is definitely improved,” Porter said. Over the last six months, lenders have been seeking “value-add deals,” acquisitions that could be profitable following a turnaround. Rates for these funds are typically in the 5 to 6 percent range. “Most of the debt funds have a minimum $15 million loan size, so it’s for the larger deals,” Porter added, but acknowledged that some deals go for less. 

SBA Loans

Loans from the Small Business Administration may be attractive for recourse borrowers, Cohen said. Specifically, the SBA 504 program provides much higher leverage at what Cohen called “a very attractive cost from a rate standpoint” compared to conventional loans, CMBS and debt funds. 

“Most of our borrowers are trading … recourse for super-high leverage [and] low-cost financing as well as a loan that allows you to execute a business plan like a [property improvement plan] or some [capital expenditures] upon acquisition,” Cohen said. Notably, an SBA loan could be used for ground-up construction, an acquisition with CapEx or refinances, a distinction from the traditional model of bridge debt for acquisitions and perm debt for other purposes.

The SBA, Cohen added, is “fairly generous” in terms of what they consider to be eligible costs, including land purchase, hard costs and some of the borrower’s closing costs. “We’re advancing on a total pie that is inclusive of all of the total costs that are going into the project, and the borrower is really only having to inject 15 percent equity against those total costs,” he said. “I think [this] makes the SBA 504 program, in particular, a very attractive program for hoteliers.”

Watch the full panel on demand.

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How Refinancing SBA Loans Can Open New Doors for Hotel Owners

Originally published on Hotel Online

Just as travel was again on the upswing, a new variant of COVID-19, along with the global rise of cases has created yet another revenue setback for hotel owners and a slowdown in business meetings, conventions, and vacations. Thankfully, there is a new financing opportunity that can help hotel owners save money, access cash for improvements, and stay afloat during these uncertain times for the industry.

A recent rule change from the Small Business Administration (SBA) allows hotel borrowers to refinance their floating-rate SBA 7a loan to a fixed-rate SBA 504 loan. This opportunity is phenomenal for nearly any small business, but it is especially beneficial for most select and limited-service hotel owners.

Why refinancing is a no-brainer

If you have a 7a loan, the SBA’s flagship offering, you’re in good company. The SBA created more than 40,000 7a loans in 2020 worth a combined $22.55 billion. These are the most common government-backed loans sought by hotel owners because they can be used for ground-up construction projects and cover all business expenses. Equity isn’t built fast in these loans, however, which makes them difficult to exit.

The SBA’s new rule allows borrowers to refinance into the lower-cost 504 loan with more existing debt than was previously allowed. SBA 504 loans have a fixed rate, lower fees than the 7a loans, and offer up to 90% leverage. Even better—and this is where struggling hoteliers can really use a boost—504 loans allow you to cash out up to 20% of the property value to use as working capital. The new rule no longer requires borrowers be current on all payments for 12 months before filing an SBA application.

Any hotelier that was hoping to execute property improvement plans (PIPs), business plans, or renovations now has a way to fund those plans while reducing their monthly payments. Previously, borrowers could only refinance half of their project’s debt, but this interim rule allows them to refinance the full 100%.

Rates about to rise even more

Interest rates have already ticked up from historic lows, and recent activity from the Federal Reserve suggests now is the time to pull the trigger on this opportunity.

Getting ahead of those interest rate increases will be important, because 7a loans usually have variable interest rates between 5-6% while a 504 loan has a lower, fixed rate. The SBA debenture rate for January is 3.21% fixed for 25 years. The sooner you refinance, the better savings you’ll see against the forecasted higher rates.

Choosing the right lender

Not all lenders are created equal, and you’ll want to engage with a company that can offer the proper guidance to meet your business needs. A non-bank lender can usher you through the process and help you understand which loan works best for your hotel. If you’re already working with a bank that knows what you’re trying to accomplish, it should also be able to help you find the best loan program.

Keep in mind that you’ll want to find a lender that has experience with 504 loans and has an existing relationship with both the SBA and the certified development companies (CDCs) in your state. Trying to work outside of that network can bog down the speed of executing transactions.

If the looming rate hike didn’t convince you that now is the time to execute, consider this point as well: The interim SBA rule that allows for this refinance probably won’t go on indefinitely. As the hospitality sector continues to try to rebound from the pandemic, the opportunity to refinance is here NOW and is too good to pass up.

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How to Finance Hotels in the Post-COVID Era

Originally published on Hotel Management

The COVID-19 pandemic has affected what kind of financing hoteliers can secure for their projects and how they can get that financing. During a recent webinar, a pair of economic advisors shared their insights on what hotel owners should know about securing funds now, and going forward.

Andrew Broad, principal at New York-based commercial real estate agency Avison Young, said that 2021 has been a “recovery year,” with leisure destinations across the country seeing a stronger recovery, which determines what kinds of assets are eligible for financing. “It’s what you are [and] where you are, and what’s available to you from a financing standpoint may depend upon that,” he said. “We’ve seen anything from bridge financing, to assuming financing, to a couple deals that we’re closing this month that we actually went out and got [commercial mortgage-backed securities] fixed-rate money.” The availability of capital has improved, he added, but where a borrower falls on that spectrum depends on what kind of asset the owner has, where it is located and what kind of money is coming in—or not. 

Watch webinar on-demand

Special servicers like Avison Young are getting “inundated,” Broad said, because many of the support systems hotels have needed in recent years fall into the special service category, including CMBS loans. The Small Business Administration, he added, offered “a lot of relief” to borrowers: “So the things you would have to normally do in a situation of distress from a balance-sheet lender standpoint, they didn’t have to do.” 

SBA Support

Alex Cohen, Liberty SBF CEO and co-founder, agreed with “pretty much everything” Broad had said, adding that the interest rate environment for floating rate liabilities has assisted in buoying the market through the downturn. The company helped secure Paycheck Protection Program loans for “hundreds” of hotel owners across the country, he said, and a range of factors—including a “very supportive regime” from the Small Business Administration that allowed for payment deferments and a supportive balance sheet community also helped keep the industry afloat. “That being said, as we go into next year, we do expect to see some distress, particularly for assets that are not catering to the leisure market,” Cohen said. Assets in central business districts and downtown areas may continue to struggle, driving “distressed low-end sales.” On the other hand, he said, if interest rates do stay low and the lender community continues supporting hoteliers, the challenges could balance out. “Obviously, the market has underperformed, but in terms of distressed selling, that’s not something that we’ve seen to the extent that we saw in 2008 through 2010,” he said. “But I do expect that we will start to see that coming into next year.”

Broad, meanwhile, predicts some challenges with property improvement plan and capital expenditure liabilities—“coupled with the fact that a lot of folks in the industry accelerated depreciation.” The overall scope of PIPs has expanded and supply chain and inflation have similarly impacted the cost of those projects, he added. “So looking forward, there probably is some distress there that just hasn’t been recognized yet, and I personally think it’s coming down the pipe.” 

Assets that have recovered to pre-COVID revenue per available room are assets will be able to get financing going forward, either through conventional channels or from the SBA. “We’re also starting to see that the capital markets lenders like CMBS are starting to come back,” he said. “Obviously, the amount of allocation that they’re providing to the hotel industry is smaller than it was pre-crisis but you know, we are starting to see liquidity come back into the market.” 

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Hotel Property Loan Closed: $2.2MM Conventional Loan

Liberty SBF has closed a first mortgage loan totaling $2.2MM for the refinance of an AmericInn by Wyndham, a three-story, 69-room, limited-service hotel located in Mounds View, MN. The borrower will use the funds to restructure the ownership of the property.

The AmericInn by Wyndham in Mounds View, in the growing Minneapolis MSA, opened in 2002, and underwent a $1 million+ renovation in 2018. Connected to Mermaid Entertainment & Event Center, the National Sports Center, and various corporate offices, the hotel benefits from both local and regional demand.

How can we help?

Liberty SBF offers personal service for SBA 504 and Conventional loans for owner-user properties across the US. We’d love to help you.

Get Your Deal Quoted

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10 Articles About CRE From Liberty SBF

Liberty SBF has become a thought leader in commercial real estate finance with articles published online and in major industry media outlets. Below are 10 articles published by Liberty SBF or in influential publications with the company’s input.

1) Non-Bank Lending Is the Solution for Small Business CRE Loans

Strong demand for capital in the commercial real estate sector is expected to continue for the foreseeable future. Historically low interest rates, a robust economy, and strong employment numbers are boosting a surge in CRE demand across the country. People might assume that all commercial real estate lenders are alike, but there are many types of financial institutions that work with CRE borrowers.

What is a non-bank lender and how is it different?

2) Think Retail is Dead? Think Again!

Despite what you might be hearing in the news, in today’s strong economy, retail trade continues to grow. April 2019 saw a year-over-year 3.1 percent increase in US retail sales

Find out how business owners can thrive in the new retail ecosystem especially with an SBA 504 loan.

3) Green Office Properties & the SBA 504 Loan

When you acquire a green office property you can help protect the natural environment, have a healthier workplace, and take advantage of the special SBA 504 Green loan program, when the office property you are purchasing meets certain environmental standards.

Find out advantage of SBA 504 financing for office properties here.

Man in suit with graph showing loan interest rates

4) Loan Interest Rates for Dummies (and the Rest of Us)

We spend a lot of time talking about interest rates because they affect so much of our lives. On a personal level, they govern the cost of our mortgage, our credit card bill and our car payment. In business, they affect our ability to grow and expand, to invest in new equipment, and to purchase commercial real estate.

But how well do we really understand interest rates? Where do they come from? What do they mean, and how can we make smart financial decisions based on our expectations for future interest rates?

Click here to find out more about interest rates.

5) Characteristics of an Industrial Real Estate Hot Spot

Over the past few years there has been a revitalization of the industrial sector, driven primarily by e-commerce retailers looking for warehouse space that meets their specific needs.

On paper, that looks like decreased industrial vacancy and increased rents. What really makes an industrial hot spot in different regions?

Click here to see what makes an industrial hot spot.

6) The Interim Second – a Critical Element of Every SBA 504 Loan

If you’re familiar with SBA 504 loans, you’re likely at least familiar with the term “interim second.” But there’s also a good chance that you may not fully understand what an interim second is, and how critical it is to SBA 504 financing.

Click here to learn more about Interim Seconds for SBA 504 loans.

Flexible open office space

7) What a 25-Year Term on SBA 504 Loans Means for Business Owners

Last year, the SBA made the first major change to its 504 loan program in over 30 years: It added a 25-year term. Now, businesses owners applying for a SBA 504 loan can choose from a 10-, 20- or 25-year debenture. What’s different about a 25-Year SBA 504 loan?

Click here to find out.

8) Scale the Multifamily Mountain with a Bridge Loan

When your multifamily property deal needs to close before your agency loan is approved. When this happens, having a strong bridge lender on speed dial can make a commercial mortgage broker look like a hero to their client.

Find out more about bridge lending for multifamily here.

9) Spotlight on Self-Storage: What’s all the Buzz About?

This asset class may not exude the glamour of a shiny downtown office tower, but self-storage assets have for a long time been the unsung heroes of commercial real estate investments. People are talking more and more about self-storage.

Read why here.

10) Hotel Financing With the SBA 504 Loan Program

The US hotel industry saw another record year in 2018, reaching absolute values that were the highest ever benchmarked. A 10th consecutive year of growth is predicted for 2019, according to CBRE Hotels Americas Research. As experienced lenders, we are convinced that the best, most cost-effective solution is to finance your hotel is with an SBA 504 loan.

In this article, we will walk you through today’s peak hotel market, as well as recent changes that affect SBA 504 loans.

Get Your Deal Quoted!

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SBA 504 Milestone and the Senior Housing Changes…


New 25-Year Fixed Rate SBA 504 Loans Reach $1 Billion Milestone

Small businesses, banks, and investors warmly received the SBA’s 25-year loan program, launched in July 2018. In June, less than a year later, the total amount lent reached $1.04 billion, exceeding the $1 billion goal for the first year. The numbers represents 1,289 fixed-rate SBA 504 loans to U.S. small businesses.

Also: Read our article on what the 25-year term means to business owners.


Senior Housing Needed for Middle-Income Boomers

Medical Facility in Arizona

Senior housing today is unaffordable for middle-income retiree such as nurses, schoolteachers, firefighters and steel workers, and they will have too much income to qualify for Medicaid. Aging boomers also want more amenities and independence, and as-needed healthcare than earlier generations. Real estate investors, developers, owners and operators need to innovate fast. Some proposed solutions include tax incentives, repurposing existing real estate like former malls and big-box retail, designing for construction, operational efficiency and cost savings, and volunteer caregivers.


Rising Costs of Mandated Hotel PIPs

Nearly every hotel deal comes with a mandated, formal property improvement plan (PIP) that addresses every aspect of the hotel from mechanical systems and plumbing to lighting, landscaping, and parking. PIPs are increasingly costly, as branded hotels have become more aggressive in their PIP requirements. The PIP can be negotiable, especially for sellers and buyers who have existing relationships with the brand. Negotiating PIPs early on can directly increase profits for sellers and lower the costs for buyers.


US Retailers Strive to Differentiate Offline Channels

A recent study by Avison Young describes the challenges online retailers present to offline retail distributors in the US. As Amazon creates a shopping environment unrestricted by time, place, and product, some department store chains have improved offline sales by stepping up customer-friendly services. For example, Nordstrom is expanding its service-hub Nordstrom Local concept that combines several of its most popular or highly demanded services under one roof to serve customers in their own local markets.


How Can We Help You?

Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.

Let’s Talk. 

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News Roundup: Uber-izing self-storage…

The Latest Commercial Real Estate News From Liberty SBF

Bullish on Self Storage

A dependable bet in commercial real estate investment is the $38 billion and growing self storage industry, offering consistent returns even in slow markets, unlike other asset classes. This year, record-setting investment in self storage expansion is expected to add about 40 million SF to the existing, approximately 2.3 billion SF of rent-able space in the US.


Uber-style Self Storage

interior of self storage hallway with blue doors

Innovative self storage investors can learn much from the Uber model of fast, easy, connected service delivered through mobile devices. Automated, reliable security in facilities and online space rentals and ordering of packing supplies could tap large, underserved US markets like New York City. Tech-enabled self storage could serve consumers in growing markets as well.


Good News for Assisted Living

Medical Facility in Arizona

The results of a recent survey by Retirement Living Information Center are a demographic boost for the assisted living industry. When US seniors cannot age in place (their #1 preference), the majority of the 2,300+ senior survey respondents prefer moving to assisted living rather than to move in with family members or burden their children.


From Retail to Industrial

Warehouse exterior with truck docked

Investors have discovered that vacant big box stores, abandoned victims of the shift from bricks and mortar to ecommerce, are suitable for conversion to industrial spaces to serve the needs of the ecommerce supply chain. Big box locations in secondary markets are in demand for conversions to warehousing and logistics, offering new opportunities for growth in industrial portfolios.


How Can We Help You?

Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.

Let’s Talk. 

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News Roundup: Self-storage & Warehouse in Focus

The Latest Commercial Real Estate News From Liberty SBF

Self-storage is Attractive Alternative in CRE

So-called alternative assets like self-storage and student housing are gaining interest in the commercial real estate industry. In bear markets, self-storage has historically faired well, offering a safe asset for those looking to put their money in a place that might do well if the economy softens. According to reports, alternatives are attracting attention but the market still sees comfort in office, retail, industrial and apartment properties as well as available data to support their decisions.


SBA 504 Loans and Self-storage Financing

Warehouse building with self storage units. Self storage facility. Roll up doors on self storage facility. One door open with boxes and furniture in doorway.

While the mega players don’t need the SBA to finance property purchases, the independent mini storage or self-storage operator will not find a loan that beats the SBA 504. For facilities that are greater than 2-years-old, borrowers can take advantage of all the many benefits that come with the SBA 504 program: 85% loan-to-value financing, a low fixed-rate and up to 25-year terms. Read on to find out how the SBA 504 loan can finance self-storage facilities.


Returned Merchandise a Boon for Warehouses

The industrial sector is already enjoying the benefits of online shopping and the Amazon-effect on the economy. Now, the reverse is true. Reverse logistics – when consumers return unwanted items – is creating demand for even more space. According to Bisnow, this phenomenon requires upwards of 20% more space than an outbound supply chain. A CBRE report states that reverse logistics is “creating tremendous industrial real estate opportunities.”


Liberty Closes Over $40MM in Industrial Property Loans

Liberty SBF clients have been participating in the new economy with over $40MM in industrial property loans closed across the county. See all of our recently closed loans.


How Can We Help You?

Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.

Let’s Talk. 

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News Roundup: Medical CRE & Added Value of Fixed-Rates

The Latest Commercial Real Estate News From Liberty SBF

Trends Drive Growth in Healthcare CRE

As one of the fastest-growing segments of the economy, the U.S. healthcare industry is changing the landscape of the commercial real estate industry with an increasing trend toward delivering care in places other than the traditional hospital. An aging population is one factor driving this growth. According to an article in GlobeSt.com, healthcare spending jumped by 33% since 2000 and now accounts for 17.9% of US GDP. The outlook over the next few years is very favorable with growth in spending expected to be about 5% per year.


Liberty SBF Closes $2.1MM Conventional Loan on Assisted Living/Skilled Nursing Facility

Recently, Liberty SBF closed on a $2.1MM fixed-rate conventional loan for an owner-user medical facility in San Diego, CA. The loan will help the experienced business owners expand and grow by refinancing a debt, including a construction loan. The broker who brought the deal to Liberty SBF earned a referral fee at closing. See more closed deals here.


Fixed-rate Adds Value for Future Buyers

City skyscrapers graphic with arrows and 2019

Experts observed that property owners with eligible assets are looking to lock in long-term fixed rates. Locking in a rate now while still at historic lows isn’t only a good way to hedge against rising rates in the future, it’s a good business decision. According to a report in REJournals.com, a low rate with the right structure adds value to an asset for future buyers assuming in-place debt. Read the entire article here.


90% LTV, Fixed-rate SBA 504 Loan For Warehouse Purchase

Liberty SBF recently closed a $3MM fixed-rate SBA 504 loan to acquire a warehouse in Roanoke, VA. A furniture importer whose sales were constrained by inadequate warehouse space purchased a larger facility to increase business. Quick work by the Liberty SBF team allowed the deal to close before year-end.


How Can We Help You?

Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer quick closings for SBA 504 and conventional loans. We’d love to help you.

Let’s Talk. 

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News Roundup: Why Inland Is the New Coastal

The Latest Commercial Real Estate News From Liberty SBF

 

No End in Sight for Industrial Real Estate in Southern California

Warehouse aisle with fork lift

Industrial is leading commercial real estate across the country, but in Southern California, it’s breaking records left and right. According to GlobeSt, industrial prices in Los Angeles are currently 70% above the national average, while prices in Orange County and Inland Empire have increased significantly in the last five years.


Inland is the New Coastal

Aerial photograph of the downtown area in the midwest

Thanks to the vested interest of local community banks, higher cap rates, growing economies and population increases driven by affordability, some investors are moving away from big coastal markets and focusing instead on smaller secondary markets in the Midwest, reports Bisnow.


Liberty Provides More Than $28 Million in SBA 504 Funding in Non-Coastal Areas

Medical facility in Nevada

Liberty has provided more than $28 million in SBA 504 loans for the acquisition of properties in non-coastal areas in Nevada, Utah, Arizona, Pennsylvania, California and Georgia.


Hotels Are Doing Better than Ever

Woman walking into hotel room with luggage

In 2018, more hotel rooms were occupied – and at higher rates– than ever before. National Real Estate Investor notes that as long as the demand for hotel rooms continues to outpace the number of rooms available, occupancy and rental rates will continue to increase.


Liberty Provides More Than $12 Million in Financing for Hotels

st simons hotel pool exterior

In the space of just one year, Liberty provided more than $12.4 million in financing for hotel properties in Las Vegas, Nevada, and St. Simons Island, Georgia.


How Much Longer Do We Have?

Erratic housing market

The current real estate expansion is almost in its ninth year, making it the second-longest in the post-World War II era. Many in the commercial real estate industry are wondering if a recession is imminent. While many economists believe that this expansion is in its later stages, experts have put the odds of a recession in the next year at just 15%, GlobeSt reports.


How Can We Help You?

Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer personal service for SBA 504, bridge and conventional loans. We’d love to help you.

Let’s Talk. 

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News Roundup: Self-Storage Rides a High, Rate Hikes Haven’t Ruined Things and the Dawning of the Age of the Cheap Chic Hotel

 

Self-Storage Is Up 120%+, Still a Good Bet

interior of self storage hallway with blue doors

Let’s face it, we’re addicted to stuff. And self-storage facilities are there to help. That’s why self-storage sector REITs are up 120.6% in the last eight years. While self-storage rental rates may no longer be growing by double digits, many professionals see plenty of positives in the sector’s future.


Liberty Finances $1.9 Million Self-Storage Facility

Self storage building exterior with red doors

Liberty SBF has provided nearly $2 million in SBA 504 financing to a self-storage facility in Panama City, FL. The loan allowed the owners to refinance their property, while taking advantage of the low fixed-interest rates and long terms of SBA 504 loans to improve their cash-flow position.


Rate Hikes Haven’t Impacted Pricing or Volume … Yet

skyscrapers from below into the sky

While the Fed keeps bumping interest rates higher, and plans to keep doing more of the same, real estate pricing and availability have yet to show repercussions. Globe St. reports that while pricing and sales velocity are currently remaining unchanged, things could slow down toward the end of the year.


Affordable, Trendy Hotels Cash in on Consumer Demand

modern hotel bed with zebra pillows

What do millennials want? Good design. And what do they want to pay for it? Not much. The New York Times is reporting on the rise of the cheap, chic hotel that’s meeting consumer demand with low-priced rooms combined with trendsetting designs. And consumers can’t get enough.


Liberty Finances Hotel Projects in Georgia and Utah

st simons hotel pool exterior

Liberty recently provided funding for two hotel projects, a $7.7 million loan for a hotel on St. Simons Island, Georgia, and a $4.7 million SBA 504 loan for a hotel acquisition in Midvale, Utah.


Industrial Property Activity Spikes in the Midwest

aerial photo of warehouse in midwest

For months, East and West Coast metros have been feeling the heat of incredible demand for industrial properties, fueled by the “Amazon effect” and e-commerce logistics. Now, it looks as though the Midwest is getting involved, with a 103% increase in industrial CRE investment in Columbus, a 41% increase in Chicago and a 29% increase in Indianapolis.


How Can We Help You?

Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer personal service for SBA 504, bridge and conventional loans. We’d love to help you.

Let’s Talk. 

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News Roundup: Good News for the Carolinas, The Impact of Driverless Trucks and the Latest CRE Forecasts through 2020

 

SBA Announces Deferments for Hurricane Florence Businesses

Flooded residential streets

If you didn’t expect to see the kinder, gentler side of government loan programs today, prepare to be surprised.  The SBA has announced that businesses affected by Hurricane Florence in North or South Carolina can apply for up to a 9-month deferment of their qualified SBA loans, including SBA 504 loans.


Liberty Provides Over $38.4 Million In Warehouse and Industrial Financing

warehouse exterior with trucks

Over the past 3 years, Liberty SBF has provided more than $38.4 million in SBA 504 financing for warehouse and industrial projects.  Recently, the company provided a $9.1 million SBA 504 loan for an industrial property in San Diego, CA.


What Driverless Cars and Picking Robots Mean for the Warehouse Sector

Robot arm in warehouse

With new laws for driverless vehicles on the books in 29 states, and robots already playing a key role in Amazon warehouses, it’s time to think about what automation means for warehouses.  NREI takes a look at what happens when warehouse tenants embrace a highly automated present, and future.


Florence’s Effect on CRE

Flooded neighborhood

As hurricane recovery from Florence gets into full gear, there may be a silver lining in some sectors.  Several experts are predicting an upswing in multifamily housing and hotel trends in the Carolinas over the coming months. One change that might differentiate this from past hurricane recoveries?  Many of the damaged homes are second homes, which could affect predictions.


Liberty Provides Over $12-million in Hotel Financing

hotel in Utah

In recent years, Liberty SBF has provided more than $12-million in financing for hotel projects. Most recently, the company provided $4.7 million in SBA 504 financing for a hotel in Midvale, UT.


A Strong Forecast for CRE Through 2020

City view of skyscrapers and residential houses

The latest edition of the Urban Land Institute’s Real Estate Economic Forecast is predicting good news across all major sectors of commercial real estate, and revising up their forecast from earlier in the year.  Check out their summary article here, or dig into the nitty-gritty details for yourself right here.


How Can We Help You?

Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer personal service for SBA 504, bridge and conventional loans. We’d love to help you.

Let’s Talk. 

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Liberty SBF Closes Pueblo, Colorado SBA 504 Hotel Loan in Record 33 Days


Loan Details:

Closed in 33 days!
$3.05MM SBA 504 loan
Hotel/Resort
Pueblo, CO

Liberty SBF, a national commercial real estate lender, today announced that it has closed and funded $3.05MM in total SBA 504 proceeds to finance the purchase of a 60-key, limited service Quality Inn hotel in Pueblo, CO. The deal was closed directly from Liberty’s balance sheet in a record turnaround time of just 33 days.

The borrower approached Liberty SBF with a request to close in an extremely short time frame due to an imminent 1031 exchange deadline. Liberty worked with Colorado Lending Source as the Certified Development Company (CDC) and received SBA approval in 5 days. Calling on years of experience, Liberty SBF was able to expeditiously move the loan from underwriting to closing – exceeding the borrower and marketplace expectations on loan turnarounds.

“Colorado Lending Source was excited to partner with Liberty SBF to finance the Quality Inn in the Pueblo community,” said Kamry Bowman, Loan Officer at Colorado Lending Source. “Through our partnership with Liberty SBF we were able to get SBA approval in place and meet the borrower’s closing timeframe in short order. We found Liberty SBF to be a great partner throughout the process.”

The hotel property is located in the city of Pueblo, CO, a few minutes’ drive from amenities including a golf course, skiing, state park, Colorado State University, and a convention center. The new owners, John and Shefali Miller will be involved in running the hotel on a day-to-day basis. They also plan to keep the entire hotel management team in place and create new job opportunities for the Pueblo area.

“Our 1031 Exchange presented a stressful and tight timeline to find our next financial investment,” said John Miller, President, Siena Investment Holdings LLC. “Ultimately, the funds were used for a down payment on a hotel property and we needed to obtain financing quickly. Liberty SBF understood our challenge, helped identify the best loan package and provided competitive financing for our hotel within deadline. They came through for us in a big way.”

Liberty SBF is helping to revitalizing the SBA 504 market, filling a void in secondary market lending with its National First Lien SBA 504 Wholesale Program. Liberty SBF partners with approved banks, non-bank lenders and other SBA loan intermediaries to originate 504 loans across the country and can pay up to 4 points of premium to its partners. Liberty SBF also services the loans in its portfolio.

“The perception in the marketplace is that closing an SBA loan is a lengthy process. We have proven that with the right team, SBA 504 loans can be closed quickly and efficiently under a strict deadline,” said Alex Cohen, CEO of Liberty SBF.


Liberty SBF’s National First Lien
SBA 504 Wholesale Program

Price loans and build in your referral fee
automatically in a few easy steps:

1. Click here to download Liberty SBF’s National First Lien SBA 504 Wholesale Program Rate Sheet & Underwriting Matrix to review eligible loan parameters.

2. Use rate sheet to price eligible loans based on our national par rates. Determine loan eligibility using our Underwriting Matrix.

3. Earn up to 4 points of premium income by marking up par rate, earning origination fees and structuring additional PPP (Not subject to dollar cap).

4. Remember: Liberty SBF will also consider deals that fall slightly outside our credit box. Call the desk for par pricing.


Contact (610) 816-0200 or
deal@libertysbf.com for more information!

Nationwide Lender | Brokers Protected

Nationwide Lender | Brokers Protected

Copyright © 2016 Liberty SBF

2 Penn Center, 1500 JFK Boulevard, Suite 250, Philadelphia, PA 19102 | www.LibertySBF.com.

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