SBA 7(a) Hotel Feasibility Study in Connecticut

The Connecticut SBA 7(a) hotel and motel book at a glance

On hotel and motel projects in Connecticut, SBA logged 41 approvals, $109.2 million in gross dollars, in Connecticut under 7(a) over FY2017 to FY2026. Standing: 39 in the Connecticut hotel and motel (SBA 7(a)) approvals, and 14 of 39 across Connecticut's own asset classes. Midpoint size: $2.8 million. Relative to hotel and motel (SBA 7(a)) lending nationwide, Connecticut runs at 1.27x on the median, a larger loan size. Half of all Connecticut loans run from $930,000 to $4.2 million. Franchised applicants account for 61.0% of the 41 loans. Connecticut hotel and motel lending blends into its parents across 41 loans: nothing in Connecticut clears the distinctness margin, so Connecticut readers should use Connecticut's lender, county and timing detail.

Who lends, where and when in Connecticut

Among Connecticut institutions, the leaders by loans approved are Hanover Community Bank at $22.9 million across 10 loans and Shoreham Bank at $16.5 million across 5 loans. Read the 10 loans and $22.9 million for Hanover Community Bank with care: SBA lists each Connecticut loan's current holder, so a Connecticut lender in the list may have taken over a hotel and motel note rather of making it. Within Connecticut, the counties with the most loans are Capitol with 11, New London with 10, New Haven with 3 and South Central Ct with 3. On the calendar for Connecticut, approvals peaked at 7 loans, worth $14.7 million, in FY2020, while FY2026 closed with 4 loans and $13.8 million, and FY2017 opened this series with 5 loans.

Connecticut hotel and motel: how to read the outcome floors

Of the FY2017 to FY2024 Connecticut hotel and motel approvals, at least 14.7% were cancelled before full disbursement; counting undisbursed loans as cancelled gives the identical 14.7%. Losses get no rate for Connecticut hotel and motel: of 41 loans, the FY2017 to FY2021 disbursed cohort holds too few for a figure, so the Connecticut number stays withheld and never means zero for hotel and motel. Readers must take these Connecticut rates, drawn from 41 loans, as floors, not as settled results. One coding limit applies Connecticut hotel and motel figures: lodging credit in Connecticut come under one single class covering both property types, with nothing to means to split limited service and full-service.

Issues an SBA 7(a) hotel and motel study in Connecticut has to pass

Under 7(a), a Connecticut hotel and motel request, one of 41, is judged by the Connecticut originating lender, whose guaranteed hotel and motel loan rests on Connecticut repayment capacity and the real estate the Connecticut study has to support. Room demand in Connecticut should be tested through demand generators: corporate demand, tourism, events and the existing hotel supply. Flag requirements, property-improvement cycles and opening outlays must get priced for the Connecticut project. Debt service coverage for Connecticut hotel and motel should be shown at the $2.8 million median and also near $4.2 million, the top end of the Connecticut middle half, alongside a slower hotel and motel scenario beside each. An appraisal for Connecticut would test for rate and fill against comparable hotels, and our work should show the same. A borrower that approaches Hanover Community Bank needs to read its 10 loans here as context alone: SBA's totals describe loans, not its terms.

Daniel Smith, MAI, signs the Connecticut hotel and motel study: the $109.2 million approved before is orientation, and the hotel and motel study itself handles the project issues; Connecticut approval is never assured here.