Hotel SBA 504 Green Program
Unlimited SBA allocation of 5.5 million for green hotels
The major feature of
the program is that with the Green 504, a hotelier can acquire or
develop any number of hotels and obtain a 5.5 million SBA allocation
every time. Additionally, the Loan to Cost or Loan to Value can be as
high as 85% for a start up project rather than 80%. Considering that
the 5.5 million is 35% of the project, this means that the total hotel
purchase or development may be high an in the 20 million range.
The project starts with an energy engineer doing an assessment and
analysis on the hotel. The energy requirements and the 10% efficiency
by the SBA will translate into a specific energy to be provided by
sources such as solar panels. The report will then be given to the
vendors such as solar panel retailers to obtain a quote which in turn
will be added to total project cost.
Scientific Capital Group, Inc. All rights reserved