Hotels
SBA 7(a) + 504 hotel stack
A 7(a) + 504 stack is a structure that combines two SBA programs in one project: a 504 bank first lien and CDC debenture for the real estate, and an SBA 7(a) loan for working capital, equipment or other eligible costs, so the total SBA-backed exposure on a larger hotel or care-facility project can exceed what either program supports alone.
Key facts
Figures as of 2026-10-31. Program rules change by notice, so an advisor confirms current terms with lenders before you rely on any figure.
| Item | Figure | Source and date |
|---|---|---|
| Modeled combined SBA exposure | Up to $10M | Corin modeling of the 2026 combined 7(a) + 504 structure; confirm against SOP 50 10; as of 2026-10-31 |
| 7(a) loan cap | $5M | SBA SOP 50 10 (confirm the revision in effect at application); as of 2026-10-31 |
| CDC debenture cap | $5M standard; $5.5M for qualifying energy-efficiency projects | SBA SOP 50 10 (confirm the revision in effect at application); as of 2026-10-31 |
| 7(a) SBA guaranty share | 75% | SBA SOP 50 10 (confirm the revision in effect at application); as of 2026-10-31 |
| 7(a) upfront guaranty fee / annual service fee | 3.50% / 0.55% | Corin sizing estimate; as of 2026-10-31 |
| 7(a) indicative pricing | Prime + 2.00–2.75 points | Corin sizing estimate; as of 2026-10-31 |
| Borrower equity (special-purpose) | 15% | SBA SOP 50 10 (confirm the revision in effect at application); as of 2026-10-31 |
Why stack the programs
A single 504 project is limited by the debenture cap, and a 7(a) loan alone is limited by its own cap and variable-rate structure. Stacking lets a larger hotel or care-facility project use the 504's long-term fixed real estate financing and the 7(a)'s flexibility for working capital and other eligible uses.
SBA stacking rules and the combined exposure SBA will accept are revised from time to time. The figure on this page is Corin's modeling assumption and must be confirmed against the SOP in effect when you apply.
Where the stack fits
- Acquisition of a flagged hotel plus a funded PIP and working capital
- Hotel repositioning where renovation and opening costs exceed a single program's cap
- Care-facility acquisitions combining real estate and operating business costs
Trade-offs
Two programs mean two sets of documents, fees and approvals. 7(a) loans are typically floating-rate, and the combined structure needs more lenders to line up. The extra complexity is worth it only when project cost really exceeds what a single program supports.
Frequently asked questions
Is the combined 7(a) + 504 limit fixed by SBA?
Not as a single published number. Corin models up to $10M for planning. Confirm with the lenders and the SOP in effect at application.
Can the same lender do both loans?
Sometimes. A bank that is a participating 7(a) lender can often provide the 504 first lien as well, with a separate CDC for the debenture.
Does the stack change equity requirements?
Equity is driven by project type. A hotel is special-purpose property, so the base case is 15%, with more for start-ups or new construction.
Related programs
- SBA 504 hotel loansBank first lien plus a 25-year fixed CDC debenture for owner-operated hotels.
- Hotel CMBSFixed-rate, non-recourse conduit debt for stabilized hotels.
- PIP bridgeFloating, interest-only debt to complete a franchise renovation before a permanent takeout.
- Hotel to senior living conversionAcquisition and conversion bridge for turning a hotel into licensed senior living.
- Hotel financingSBA, CMBS and bridge options for hotel owners and buyers.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.