Hotels and Motels acquisitions in Iowa: SBA loan data
Since FY2018, SBA lenders have approved 21 7(a) loans to buy an existing business classified as Hotels and Motels in Iowa, totaling $38.4M. The median loan was $1,960,000. That is 4.6% of the 454 acquisition loans in Iowa.
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How this compares
The median Hotels and Motels loan in Iowa is 490% higher than the $332,050 median for all Iowa acquisitions, and 25% lower than the $2,621,250 median for Hotels and Motels acquisitions nationwide (2,310 loans).
This combination has too few seasoned loans for a reliable charge-off rate. Nationally, 0.8% of seasoned Hotels and Motels acquisition loans were charged off, and 3.8% of seasoned Iowa acquisition loans of any type.
Hotels and Motels acquisition loans in Iowa by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $2.8M | $2,800,000 | |
| FY2019 | 4 | $5.5M | $1,552,500 | |
| FY2020 | 2 | $4.1M | $2,059,250 | |
| FY2021 | 5 | $8.9M | $1,660,500 | |
| FY2022 | 2 | $4.7M | $2,329,000 | |
| FY2023 | 1 | $825K | $825,000 | |
| FY2024 | 4 | $6.3M | $1,752,500 | |
| FY2025 | 2 | $5.3M | $2,629,500 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Hotels and Motels in Iowa acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Terms signed in the LOI shape the purchase agreement that follows.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 6 | 28.6% | $13.4M | |
| 2 | United Midwest Savings Bank National Association | 2 | 9.5% | $3.4M | |
| 3 | Lincoln Savings Bank | 1 | 4.8% | $2.8M | |
| 4 | The Freedom Bank of Virginia | 1 | 4.8% | $2.5M | |
| 5 | United Bank of Iowa | 1 | 4.8% | $2.3M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Super 8 | 6 | 28.6% | $10.9M | |
| 2 | AmericInn | 2 | 9.5% | $5.3M | |
| 3 | Sleep Inn | 2 | 9.5% | $4.8M | |
| 4 | Quality Inn | 2 | 9.5% | $3.6M | |
| 5 | Comfort Inn | 1 | 4.8% | $2.1M |
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Questions buyers ask
How much do SBA loans for Hotels and Motels acquisitions in Iowa run?
The median SBA 7(a) loan was $1,960,000 across 21 loans (FY2018 to FY2026), with the middle half between $1,545,000 and $2,250,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Hotels and Motels acquisitions in Iowa?
GBank (6), United Midwest Savings Bank National Association (2), Lincoln Savings Bank (1), The Freedom Bank of Virginia (1), United Bank of Iowa (1). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Hotels and Motels acquisition loans fail in Iowa?
Fewer than 20 loans in this combination are old enough to measure losses reliably, so no rate is shown. The national benchmark for all SBA acquisition loans is 3.5% (FY2018 to FY2021 cohort).
Are franchised businesses part of Hotels and Motels acquisitions in Iowa?
16 of the 21 loans (76%) involved a franchise brand, most often Super 8 (6).
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Related
- All Iowa acquisitions
- Financing one? How to get an SBA loan to buy a hotel or motel
- Hotels and Motels nationally
- Hotels and Motels in Texas
- Hotels and Motels in Georgia
- Hotels and Motels in California
- Hotels and Motels in North Carolina
- Hotels and Motels in Ohio
- Hotels and Motels in Illinois
- Hotels and Motels in Florida
- Hotels and Motels in Indiana
- Full-Service Restaurants in Iowa
- Limited-Service Restaurants in Iowa
- Offices of Chiropractors in Iowa
- Gasoline Stations with Convenience Stores in Iowa
Small samples move a lot: each loan in this combination is 5% of the count. Industry is the NAICS code the lender recorded. See the methodology.