Commercial Loan Direct (“CLD Capital”) Unlocks Additional Financing Options for Hotel Loans

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Commercial Loan Direct, a business division of CLD Capital, is now offering additional financial products including SBA, USDA, conventional, and Conduit-CMBS Loans.

Apartment loans by Commercial Loan Direct

Apartment loans by Commercial Loan Direct

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Hotel values across the nation have declined approximately 40% over the past five years, which creates opportunities for prudent buyers but challenges for owners with maturing hotel loans that need to be refinanced. In order to cater to both the prospective and current owners, Commercial Loan Direct, a business division of CLD Capital, is now offering more commercial loans to target new hospitality loans.

Both Savvy buyers, who can take advantage of the lower prices, and current owners, who have 5-year loans maturing in 2013 or 2014, can both share in the opportunity to fund their loans through government, conventional and conduit programs.

SBA 7(a) (up to 80% LTVs) and 504 Programs. Through an SBA loan, borrowers can now finance up to $5 million through SBA 7(a) or $10 million through SBA 504 (up to 85% LTVs), which helps minimize down payments and bridge the gap between loan balances and current values. This has been a strong go-to option for owner-operators that are in secondary or tertiary markets or have higher LTVs than most other programs would allow.

Conventional Commercial Loans. Although not quite as popular as the SBA or conduit options, conventional commercial loans are finally starting to make a comeback in the lending marketplace, which Commercial Loan Direct is taking full advantage of in order to increase the number of hotel options it offers. Hotel lending in the conventional arena had all but stopped for the last 3-4 years, but has recently begun picking up, and is expected to increase as the year progresses.

Conduit Loans. For hotel borrowers with loan amounts over $3 million that are seeking a non-recourse option, Commercial Loan Direct has partnered with several conduit lenders to offer products in primary and secondary markets with 65-70% LTVs and very competitive rates.

Commercial Loan Direct has positioned itself to take advantage of the influx of hotel financing requests that it expects to see throughout the year by offering more programs than ever before and partnering with lenders offering a variety of hotel funding options. CLD also offers a variety of apartment loans nationwide.

View Commercial Loan Direct's current hospitality commercial loan rates

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Leanne Eicoff

Leanne Eicoff
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