Hotel Loans in Frisco, TX

SBA 7(a) loans remain the benchmark for owner-occupied hotel purchases, offering up to $5 million with 10% down and 25-year amortization when the borrower operates the property full-time. Commercial real estate loans serve passive investors or properties exceeding SBA size standards, typically requiring 25-30% down and floating or fixed rates tied to treasury spreads. Hotel bridge loans deliver speed for auction purchases or pre-stabilization scenarios, accepting higher cost in exchange for 12-24 month terms that convert to permanent financing once occupancy stabilizes. Invoice factoring and business lines of credit rarely apply to hospitality, but equipment financing covers FF&E upgrades during soft-goods renovation cycles. Our team at Creekfield Lenders in Frisco brokers all these structures, ensuring you understand origination fees, prepayment clauses, and recourse obligations before you sign.

A borrower approached us to finance the acquisition and renovation of a 62-room independent hotel built in 1998, located one mile south of Warren Parkway along the Dallas North Tollway. The seller accepted $3.2 million; the buyer planned a $900,000 FF&E and system upgrade to convert the property to a select-service franchise flag. We structured a loan to buy hotel using SBA 7(a) at $3.52 million (covering acquisition and a portion of renovation), paired with a $400,000 equipment financing line for the FF&E package. The borrower injected $680,000 in cash equity, meeting the 10% SBA threshold while preserving working capital for pre-opening marketing. Closing occurred 67 days after application, and the property achieved breakeven occupancy within five months of the flag conversion. This outcome required transparent cost breakdowns at every milestone, which remains our standard across all SBA 7(a) loan and commercial real estate loan engagements in Frisco and nearby Allen, Fairview, and Little Elm.