ValueXpress has obtained a $1,750,000 SBA 7(a) loan for Hospitality Solutions, Inc., secured by a 2-story, 57-room limited-service franchised hotel operating under the Super 8 franchise. The property was constructed in 2002. The loan allowed the existing 50% owner of the hotel to purchase the remaining 50% ownership position from his partner. In addition, the loan provided capital to complete upgrades to the hotel.
The loan was underwritten by ValueXpress on behalf of a local community bank located in Vicksburg, Mississippi. ValueXpress processed the loan through the national SBA 7(a) office located in Hazard, Kentucky and obtained a 75% guarantee on behalf of the community bank.
“The property owner is a good client of mine,” commented Jay Bhakta, Senior Loan Originator at ValueXpress. “In addition, I have a long-standing relationship with the community bank that will provide the loan. I knew the SBA 7(a) program would be a good fit for both.”
However, the community bank did not have extensive experience in the origination, processing and closing of SBA 7(a) loans, so ValueXpress obtained the SBA Authorization (guaranty) on behalf of the community bank. ValueXpress has done this for a number of community bankers throughout the United States.