SBA 504 Hotel Feasibility Study in Maine

Hotel loans in Maine: size and franchising

Counting FY2017 to FY2026, Maine shows 51 SBA 504 approvals for hotels and motels, adding up to $57.7 million in gross dollars. A typical Maine approval is $683,000, while the middle half of hotels and motels loans reaches from $325,000 to $1.2 million. In comparison with hotels and motels nationally under SBA 504, Maine posts a ratio of 0.33x, so a typical Maine loan for hotels and motels runs smaller than nationwide. Look first at 0.33x: it sets Maine hotels and motels apart from both parent pages of Maine. Brand affiliation touches 17.6% of the hotels and motels loans in Maine.

Among states, Maine ranks 21 for hotels and motels under SBA 504; among the classes of Maine itself, hotels and motels rank 2 of 39. Approvals in Maine peaked in FY2017 at 13 loans worth $6.7 million, with FY2026 at 4 loans, $8.4 million. Hotel borrowers in Maine take 504 loans far below the national median, a ratio that distinguishes this cell from the state's blended page and the national program page.

Most Maine loans sit with Granite State Economic Development Corporation, which holds 42 worth $52.8 million. Next come Eastern Maine Development Corporation: 5 loans, $2.1 million in all. SBA's Maine file puts Granite State Economic Development Corporation first among 51 loans, where each name holds or held hotels and motels loans; none is rated. Among counties of Maine, York shows 16 loans; next are Cumberland with 11 and Hancock with 6. Lower on the list are Androscoggin 5, Waldo 4 and Kennebec 2.

Outcomes and data limits for Maine

Looking at Maine hotels and motels approved through FY2024, at least 9.1% were cancelled after approval; with undisbursed loans counted as cancelled, the Maine ceiling stays at 9.1%. The loss side is blank: funded loans in Maine are too few, which says nothing about Maine either way. Maine inns, motels and hotels all sit under one code, which blurs the line between a limited-service property and a full-service one. Only SBA lending is counted in Maine.

Testing a Maine lodging project

Maine's calendar is the test: revenue arrives in a busy stretch and must cover the year, so build a month-by-month cash plan from measured competitors near York. A 504 loan funds the real estate, which means construction or purchase price, franchise or flag terms and a renovation reserve all belong in the file. The cell's median, $683,000, sits far from the national figure, hinting at small inns and motels rather than large flagged hotels. Labor is a fixed cost whatever the occupancy, and limited-service and full-service models differ. Appraisers value lodging on income and discount for the risk of a slow season.