ValueXpress obtained a $1,950,000 first-mortgage loan commitment from the SBA for a 57-room limited-service hotel operating under a Country Inn & Suites franchise. The 90% SBA loan guarantee of $1,755,000 is the first loan approval for ValueXpress based on the new SBA guarantee limits. Prior to October 18, 2010, the maximum guarantee would have been $1,666,666; however, this loan was approved on October 29 under the new rules. The property, built in 1998, is located in Lumberton, NC at Exit 20 of I-95. Lumberton is situated on I-95, 20 miles north of the South Carolina border. The property, adjacent to the exit and easily visible from the highway, is the first hotel encountered at the exit.
The loan was sponsored by Lumbee Guaranty Bank. The borrower arranged for Lumbee and ValueXpress to work together on the refinancing, recognizing that ValueXpress had substantial experience in the origination and packaging of SBA 7(a) loans, while Lumbee could continue to build its long-standing client relationship by sponsoring the loan. Based on the positive experience, Lumbee and ValueXpress are committed to working together on additional SBA 7(a) loans in North and South Carolina.