SBA 504 Hotel Loan Data
Explore SBA 504 loan volume, funding totals, average deal size, regional trends, and lender activity for hotels in the USA.
This report helps hotel owners understand how SBA 504 financing is being used across the industry.
Hotels & Motels
Market Analysis
A comprehensive look at SBA 504 lending activity for Hotels (except Casino Hotels) and Motels (NAICS 721110), covering loan volume, geography, lender participation, and borrower profile from FY2023 through FY2026 (as of 12/31/2025).
Number of Loans by Fiscal Year
Dollar Volume by Fiscal Year
Key Takeaway
Hotels are one of the largest and fastest-growing industries in the SBA 504 portfolio. Loan counts are up 43% and dollar volume is up 54% from FY2023 to FY2025 — and FY2025 crossed the $1 billion mark for the first time. This reflects both strong post-pandemic hospitality recovery and rising property values pushing project sizes higher.
SBA 504 Approval Amount Brackets
Loan Term & Business Profile
Loan Term Length
Business Maturity
Key Takeaway
Hotels are a capital-intensive market — the $2M–$5M bracket alone contains 495 loans (48% of total), and 103 loans exceed $5M. The average loan is $2.56M, more than 2.5× the size of a physician office loan. Just as striking: only 38% of borrowers are established operators. The remaining 62% are startups (38%), change-of-ownership deals (16%), and new businesses (8%) — making this by far the most dynamic acquisition and new-development market of any industry we've analyzed.
Top 15 States by Loan Count
Top 15 States by Dollar Volume
Top Counties
| County | State | Loans |
|---|---|---|
| Riverside | CA | 22 |
| Maricopa | AZ | 12 |
| Dallas | TX | 10 |
| Harris | TX | 9 |
| Chatham | GA | 9 |
| Minnehaha | SD | 7 |
| Cook | IL | 7 |
| Saint Louis | MO | 7 |
| San Diego | CA | 7 |
| Pinellas | FL | 7 |
| Volusia | FL | 7 |
Key Takeaway
Unlike medical practices, hotel lending is spread broadly across the Sunbelt and beyond. The big four (CA, FL, TX, GA) account for 32% of loans — a more balanced distribution than dental or physician markets. Riverside County, CA (Palm Springs / Coachella Valley) leads all counties with 22 loans. Georgia punches well above its weight — just 60 loans but $175.9M in volume, third in the nation by dollars. Hotel lending follows tourism and highway corridors, not just population centers.
| CDC Name | Loans | Total Volume | Avg Loan |
|---|---|---|---|
| Mortgage Capital Development Corp | 103 | $295,087,000 | $2,864,922 |
| Florida Business Development Corp | 64 | $185,828,000 | $2,903,562 |
| Florida First Capital Finance | 49 | $136,699,000 | $2,789,776 |
| Mountain West Small Business Finance | 46 | $107,685,000 | $2,340,978 |
| Empire State Certified Development | 42 | $107,326,000 | $2,555,381 |
| Granite State Economic Development | 36 | $73,832,000 | $2,050,889 |
| WBD, Inc. | 32 | $51,379,000 | $1,605,594 |
| Capital Certified Development | 30 | $103,837,000 | $3,461,233 |
| New England Certified Development | 24 | $71,688,000 | $2,987,000 |
| 504 Capital Corporation | 18 | $51,482,000 | $2,860,111 |
Key Takeaway
Mortgage Capital Development Corp is the clear #1, originating 103 hotel loans totaling $295M — roughly 11% of all hotel 504 dollar volume nationally. The Florida CDCs (Florida Business Development + Florida First Capital) together account for 113 hotel loans. Capital Certified Development has the highest average loan size at $3.46M, suggesting a focus on larger flagged properties. Notably, hotel lending draws in specialized multi-state CDCs like Granite State and New England that rarely appear atop other industry lists.
| Lender | Loans | 504 Volume |
|---|---|---|
| Celtic Bank Corporation | 88 | $292,701,000 |
| Poppy Bank | 36 | $128,020,000 |
| First Bank of the Lake | 27 | $73,467,000 |
| East West Bank | 24 | $62,724,000 |
| Newtek Bank, N.A. | 17 | $44,512,000 |
| CalPrivate Bank | 14 | $30,372,000 |
| Columbia Bank | 11 | $20,597,000 |
| Bank of Utah | 11 | $25,330,000 |
| West Coast Community Bank | 10 | $15,662,000 |
Key Takeaway
Hotel lending is dominated by SBA-specialty banks, not mainstream commercial banks. Celtic Bank alone handled 88 loans totaling $292.7M — more than the top 5 lenders combined on the physician office side. Poppy Bank, First Bank of the Lake, and Newtek Bank are also hospitality-focused SBA specialists. Notably absent from this top 10: JPMorgan Chase, Bank of America, and Wells Fargo. Hotels are a specialty lending market — expertise in franchise financing, PIP requirements, and hospitality cash flow matters more than branch footprint.
1,040 loans and $2.66B in SBA volume make hotels the largest industry segment in this analysis. FY2025 crossed $1 billion in annual approvals, up 54% over FY2023. Hotels support over 12,700 jobs nationally (avg 12.2 per loan).
Average 504 loan of $2.56M with total project sizes averaging $6.88M — the largest deal sizes of any industry analyzed. 57% of loans land in the $2M+ range. This market rewards lenders with capacity and appetite for mid-size commercial hospitality real estate.
Only 38% of borrowers are established operators. Startups (38%), change-of-ownership (16%), and new businesses (8%) together make up 62% of deals. This is a market for lenders comfortable with acquisition financing, new builds, and franchise PIPs.