SBA 504 Hotel Feasibility Study in Ohio

Ohio's top 504 class, and heavily branded

Hotels and motels are the 1 of 39 class in Ohio's SBA 504 lending, with 76 loans and $176.8 million in gross dollars approved, although the state ranks only 14th among states for the pairing. Loans are large: a median of $2.3 million, 1.11x the national 504 median, with the middle of the book between $1.3 million and $3.1 million. The franchise share is 84.2%, so a brand stands behind most of them. The 504 structure finances the real estate, which makes these owners of flagged properties rather than operators on short leases.

Alloy Development Co., Inc. holds 28 loans, Growth Capital Corp. and Ohio Statewide Development Corporation hold 13 each, Cascade Capital Corporation 7 and West Central Partnership, Inc. 6. The table shows holders in SBA's file, not an assessment of any company. Franklin County leads with 11 loans, Cuyahoga has 8, Montgomery 6 and Summit 5, so a few large counties carry the class. Volume was 12 loans and $35.8 million in FY2026, the largest dollar year, against 3 loans in FY2021.

Cancellation and a withheld rate

Ohio's cancelled share runs from a floor of 14.0% up to 19.3% once loans still awaiting disbursement are added. Too few funded loans exist in the cohort to publish a charged-off rate, so the page prints none; a reader should infer nothing about losses from that silence, and certainly not a zero. The cancellation range is the only outcome measure this cell can offer.

Coding limits and what an Ohio study must prove

Limited-service and full-service hotels share one code, so this cell blends them, along with the brands. An Ohio study should state the product, room count and flag, and test the market it serves: business travel, events, universities, airports or leisure. Because the loan is large and secured by the building, appraised value should be tested against cost, with a plausible resale to another operator if the brand leaves. Property-improvement plans, brand fees and renovation timing belong in the model, and the combined loan must be serviceable once occupancy settles and also in a soft year. The appraiser will value a going concern. The study should also say what portion of the request is land and structure and what portion is furniture and fixtures, since they age at different speeds.