Basic Information About Hotel and Hospitality Loans for Your Business | NAC

The primary purpose of the USDA Hotel and Hospitality loan through the Rural Development Program is to create and maintain employment and improve the economic climate in rural communities. In the midst of the economic crisis caused by the COVID-19 pandemic, North Avenue Capital (NAC) and our team of talented Loan Specialists are aware of and understand the struggle many hotel and hospitality businesses are currently facing.

In 2017, the U.S. travel and tourism industry generated more than $1.6 trillion in economic output, which supported 7.8 million jobs in America. This includes jobs in the following industries: accommodations, travel, and food. The hospitality business is a huge part of the U.S. economy however, the financial needs of the industry can drastically change and have changed with the effects of the pandemic.

Hospitality companies need funds for many different reasons including acquisitions, refinancing, reflags, purchasing, conversation, etc. Without the proper financing, a business cannot grow or overcome obstacles. Capital is needed to pay employees, buy and fix appliances, fixtures, and furniture, cover overhead costs, and more.

With little to no financing, hospitality business owners struggle and are under stress. At NAC, we understand what it takes to create a place of comfort for travelers and sustain a business because we are a small business ourselves.

If you’re looking for a hospitality loan, North Avenue Capital has perfected the hotel loan process to fit your needs. Through the USDA Business & Industry Loan Program, NAC can come alongside hoteliers to establish, grow, and expand within the industry.

Hotel and Hospitality Loans make up nearly 25% of NAC's loan portfolio and help to create a more enjoyable stay for nationwide travelers. NAC offers hotel loans guaranteed by the USDA; we structure these loans to provide cash to operate, without ceasing production in order to meet demand.

Why choose NAC as your hospitality loan lender?

  • NAC can lend up to $25 million per project, substantially more than traditional financing sources focused on rural communities. Keep in mind SBA lenders are capped at $5 million.
  • NAC originates interest-only construction loans, with preset conversation to permanent debt, saving borrowers from multiple closings and eliminating uncertainty, changes in terms, and equity calls.
  • NAC works with a diverse spectrum of companies, including startups, projection-based businesses, niche industries, and growing businesses.
  • NAC specializes in consolidating multiple types of debt into a single loan structure that is fully amortized, non-callable, with no balloon payments over time.
  • NAC lends for new and ground-up construction projects.

Looking to Apply for a Hotel and Hospitality Loan?

Hotel and hospitality loans help support thousands of businesses, jobs, and the U.S. economy. Our borrowers are accustomed to the confidence, expertise, and established relationship that NAC offers. USDA loan specialists at NAC will determine if a hotel and hospitality loan is right for your financing needs and if you are eligible. We appreciate the opportunity to assist you in all your hospitality financing needs.

At NAC, we provide capital to empower American business growth. NAC is the only specialized commercial lender that exclusively lends USDA B&I Loans nationwide. We offer competitive interest rates, flexible terms, and high LTVs. We are uniquely positioned to dive deep into your business, develop an understanding of your key objectives, and assist in preparing a USDA financing package that executes on your vision for growth and expansion.

NAC possesses a genuine interest in partnering with you to enhance your business, create jobs in local communities, and identify opportunities to improve environmental conditions for the next generation of entrepreneurs. We have experience starting, building, and operating successful businesses across multiple industries, and are committed to forming lasting partnerships, not just closing loans.

Want to talk to one of our hospitality loan specialists?

Visit our hospitality loan page to learn more or connect with a loan specialist or call us at 8665264950 with any USDA business loan question or to determine your eligibility for a USDA business loan.

We have office locations in Arkansas, Tennessee, Texas, Georgia, and Florida, but we are not limited by geographic location like many rural-oriented financial institutions and can partner on projects in all 50 states.