Hotel franchises chasing SBA loans

Jessica SarterBoeFly In The News

HotelNewsNow.com
HotelNewsNow.com

SBA lending has been low overall but high in the hotel sector, said Mike Rozman, co-president and chief strategy officer of BoeFly. Just 9.6% of SBA loans by dollar amount were extended to franchised businesses. But in that 9.6%, franchised hotel properties received 47.3% of all hotel SBA loans, according to the franchise lending index.

“Within that industry, there’s been a meaningful amount of SBA exposure,” Rozman said of hotels.  Year over year, lending to franchise businesses overall grew by 3.18% as of March 2012, according to the most recent data available. Month to month, however, franchise lending edged down by 0.49%.

Even though the credit markets showed some give during March, Rozman expects the overall environment to be an up-and-down one at best during the course of the next 12 months.

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