Nikunj Shah purchased his first motel in August, a deal that may not have been possible without a popular federal loan program. Shah paid $2.4 million for the 47-unit Super 8 motel in Bradenton, financed with a $2.19 million loan from Sarasota's Insignia Bank through the U.S. Small Business Administration. The SBA-guaranteed loan came with a lower down payment and a longer term. It also was approved for a first-time buyer that conventional commercial lenders often reject. "With the SBA loan, you can get a loan approved with a 15 to 20 percent down payment, compared with a commercial loan with a bank you might have to put down 25 to 35 percent," Shah said. "Commercial banks will only amortize...
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