Borrower guide · Use case
SBA loan for a hotel or motel
Hotels are among the largest SBA real-estate deals there are. The financing rewards experience and real equity — and usually points toward 504.
Special-purpose property, higher equity
A hotel is a classic special-purpose property — hard to repurpose — which raises the 504 down payment to 15% for a new owner and 20% for a startup buying one. See down payment rules. The upside is 504’s long fixed rate on a large asset.
Experience and the flag
Lenders lean on operating experience and, for a franchised property, the brand flag — a recognized franchise on the SBA Franchise Directory makes for an easier file than an independent. First-time hotel operators face a harder underwrite and usually need more equity or a strong partner.
Which program
Because most of the value is real estate, 504 is the usual structure — find the CDCs active in your state. A 7(a) can fund a smaller property or bundle the operating side into one loan.
Find a CDC
Hotel real estate usually goes 504 — see the CDCs that fund hospitality in your state.
Match with a 504 CDC →Hotels in the record
our dataHotels and motels are a substantial 504 category; see loan sizes, top CDCs and default performance on our hotel industry page. Compare 504 and 7(a) on your project below.
Common questions
Can you get an SBA loan for a hotel?
Yes — hotels are a common SBA deal, usually financed via 504 for the real estate. Expect a higher down payment and a focus on experience.
How much down for a hotel SBA loan?
A hotel is special-purpose property, so plan on about 15% as a new owner and up to 20% as a startup.
Do I need hotel experience?
Lenders weigh it heavily. Operating experience or a recognized franchise flag makes for a much easier file; first-time independents usually need more equity or a strong partner.
Keep going
Rules described here follow SBA SOP 50 10 8 (effective June 1, 2025) and can change; lenders add their own overlays. This is education, not advice — confirm specifics with your lender. Figures cited as “our data” come from the SBA 7(a) & 504 FOIA record, released 2026-06-30.