Scientific Capital Arranges 1.3 Million SBA 7a Refinance for Independent Motel in Oregon

Irvine, CA, September 03, 2010 --(PR.com)-- Scientific Capital arranges a 1.3 million 7a loan for the refinance of the independent motel in Ashland, Oregon. The complexity of this project was that the new SBA rule issued as part of the new policy manual on October 1, 2009 disqualifies any refinance under section IV-2g(3) titled “Policies Regarding Debt Refinancing” stating:

"The lender may consider refinancing any seller take-back financing with an SBA-guaranteed loan if it has been in place for at least 24 months following the change of ownership and is, and has been, current for the past 24 months."

Since this hotel was acquired in 2009 with full seller carry, the new SBA regulation made this property unqualified for SBA refinancing until 2011. Through diligent research and analysis of the language of the subsections of the regulation, Scientific Capital was able to qualify the project for the refinancing.

It is important for the new hotel buyers who plan for a quick close through seller carry and immediate refinance after the close of escrow to be aware that unless an exception, a refinance through SBA will not be possible for a period of 2 years after the close of escrow. Buyers may contact Scientific Capital to review the specifics of their transaction and to see if refinance within the first 24 months is possible.

Scientific Capital Group, Inc. (www.scicap.com) is a national hotel financing brokerage company located in Irvine, California. For more information, please contact Ramin Mostaan at (949) 477-5000 or email at ramin@scicap.com.

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