SBA 7(a) Hotel Feasibility Study in Illinois

Hotels and motels hold sixth place among Illinois asset classes, 6 of 39, and the state is seventh nationally for 7(a) hotel loans. Between FY2017 and FY2026 the record holds 325 loans for $810.4 million. The $2.4 million median is 1.07x the 7(a) hotel median across the country, and $1.2 million to $3.6 million bounds the middle half of loans. Brands matter: 74.8% of loans carry a franchise flag, a clear majority.

Two banks hold the most loans

Millennium Bank holds 87 loans worth $240.9 million and GBank 59 worth $178.7 million, well ahead of the rest of the table. Byline Bank has 15 loans at $40.8 million, First Western SBLC, LLC, which trades as Peachtree Group, 15 at $24.6 million, and Shoreham Bank 12 at $37.2 million. SBA records show the current holder of each loan and imply no view of a lender's policies. By county, Cook has 81 loans, Lake 22, Will 20, Champaign 16, and Peoria and Tazewell 15 each, with DuPage at 14, Macon at 12, La Salle at 9 and Jefferson at 8.

Low cancellation, modest early losses

Illinois hotel cancellations sit at 6.0% or more of FY2017 to FY2024 approvals, unchanged at 6.0% when loans yet to disburse are counted. The funded FY2017 to FY2021 cohort numbers 142 loans, with 2.8% at least charged off to date and 0.70% inside five years. Both are floors for loans that remain open. Approvals peaked at 48 in FY2022 and reached 41 in FY2024 for $124.9 million, with FY2023 weaker at 22. FY2026, a complete fiscal year, closed at 24 loans worth $70.7 million.

What an Illinois hotel study must establish

Hotels and motels share one code, so the data cannot say whether a loan funded a limited-service or a full-service property; an Illinois study should name its product and compare it with the right peers. The study should map demand drivers near the site, from corporate travel and airport traffic to universities, hospitals and events, and should test how revenue moves through the year. With most borrowers flagged, it should price franchise fees, property improvement plans and the brand's reservation contribution. Debt service coverage ought to hold at occupancy under the local average, and the appraisal should rest on stabilized income, not on a cost estimate. SBA defines program rules; this page repeats none.