Industries
SBA 504 Financing for Hotels, Motels and Event Venues
Hospitality is the industry where the 504's special-purpose rule matters most. Hotels, motels and most event venues are on the SBA's special-purpose list, so the equity requirement is 15% rather than 10% (20% for a start-up). That's still well under what a conventional lender asks on the same property, and the SBA portion is fixed for up to 25 years.
The 504 for Nevada hospitality
Rooms, venues and the build-out behind them, and where the occupancy rule lands for an operator.
Why hospitality operators choose a 504
A hotel is a business that is its building. Occupancy cost isn't one line on the P&L; it's the P&L. Fixing the largest financed piece for the life of the loan takes rate risk out of a business that already carries plenty of seasonal and market risk.
What the money can buy
- Purchase of an existing hotel, motel, inn or bed-and-breakfast; the owner must operate it, not just own it
- Ground-up construction of a hotel or venue, at 60% occupancy by the operating business
- Renovation and repositioning: rooms, systems, ADA, energy upgrades
- Event venues, banquet halls and conference space the business operates
- Long-life equipment: commercial kitchens, laundry, HVAC and elevator systems
- Eligible refinancing of existing hospitality real-estate debt
The special-purpose rule, plainly
The SBA keeps a list of property types that are hard to convert to another use; hotels, motels, car washes, gas stations, golf courses and about twenty others. On those, the borrower's equity rises to 15% and the SBA share drops to 35%. A start-up buying a special-purpose property puts in 20%. The bank's 50% doesn't change.
Nevada examples
Nevada venues and event businesses that own the room.
The structure, whatever the industry
A bank first mortgage, NSDC's fixed-rate SBA portion, and your equity. Start-ups and special-purpose properties put in more.
- 50% Bank or credit union First lien. Its own rate and term.
- 40% SBA 504 through NSDC Second lien. Fixed for 10, 20 or 25 years.
- 10% You Cash or equity you already hold.
Eligibility, in brief
Your business operates for profit; tangible net worth is under $20 million and average net income under $6.5 million; you'll occupy at least 51% of an existing building or 60% of new construction; and the money buys real estate, long-life equipment, or eligible refinancing. The full requirements, with sources.
The timeline
Prequalification is free, with an answer within three business days. Full SBA approval typically takes two to three weeks, and most NSDC loans close within 45 days, because as a Premier Certified Lender NSDC approves in-house. The four phases.
Why NSDC
Nevada's oldest, largest and only statewide CDC, lending since 1981: 2,350+ loans, $1 billion+ in SBA financing, 23,914 jobs supported, from offices in Las Vegas and Reno, serving Nevada, Mojave County, Arizona, and eleven eastern California counties. About NSDC.
This page is for general informational purposes only and does not constitute legal, tax, or financial advice. Figures verified September 2026.
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Full Tilt Logistics, NSDC borrower · 2,350+ loans since 1981