Successes - PHD Financial

Client Testimonials & Successes

It has been said that the most important and impactful kind of advertising is “word of mouth.”

The majority of our clients come through referrals. We get calls everyday from people that have heard about PHD Financial and our clients’ successful outcomes and transactions. Whether the referral comes from a family member, business partner or franchisor; the relationships we have nurtured have led to our strong position in the lending community.

Here are just some of our firm’s successful transactions and what clients are saying…

$8 Million Marriott Acquisition – Pennsylvania

SBA 504 Financing Despite Complex Borrower Challenges

PHD Financial successfully financed an $8,000,000 Marriott property acquisition, navigating multiple borrower challenges

to deliver a strong, cash-flow-based structure.

Key Highlights:

$8,000,000 SBA 504 loan
Over $2,000,000 allocated for Property Improvement Plan (PIP)
Blended interest rate in the 6% range
12-month interest reserve included
12-month interest-only period
Underwritten based on pro forma cash flow

$2.8 Million Quality Inn Purchase – Texas Panhandle

Closed in Just 20 Days

This fast-moving deal required speed, negotiation, and creative structuring to get across the finish line.

Key Highlights:

85% loan-to-cost (LTC) financing
Only $425,000 cash to close on a $2.8M project
Negotiated reduced franchise fees and PIP requirements
Secured significantly lower insurance costs
Included financing for working capital and franchise fees
First-time hotel buyer
Closed within 20 days of commitment

$12 Million Quality Inn Acquisition – Florida (Treasure Coast)

Full SBA Execution in 30 Days

A complex deal involving credit challenges and operational hurdles, completed on an aggressive timeline.

Key Highlights:

$12,000,000 SBA 504 loan
Interest rate below 7%
Financing included new furniture, fixtures & equipment (FF&E)
Reduced franchise fees and PIP requirements
Lowered insurance costs significantly
Resolved three SBA EIDL loan defaults
Structured as an entity purchase, reducing closing costs and transition time
Overcame challenges including out-of-state ownership and limited hotel experience
Closed in exactly 30 days

$1.9 Million Super 8 Acquisition – Southern Illinois

Low Down Payment + Immediate Working Capital

PHD Financial helped a first-time hotel ownership group acquire and stabilize this asset with minimal upfront capital.

Key Highlights:

Only 8% down payment
$69,400 returned at closing for working capital
60-room interior corridor hotel
Originally built in 1984, renovated in 2009
First-time hotel buyers
Negotiated reduced PIP requirements and franchise fees

$2.2 Million Independent Motel Acquisition – Northwest Texas

Creative Structuring + Maximum Leverage

This deal required overcoming SBA eligibility concerns and complex ownership structure issues.

Only 11% down ($287,000)
$279,545 returned at closing for working capital
Additional $250,000 included for renovations
Nearly 110% loan-to-cost financing achieved
Independent exterior corridor motel (built in 1962)
Resolved SBA eligibility concerns related to borrower affiliations
SBA approval secured across $5M+ total exposure
Structured with a single guarantor (25% ownership)
Remaining partners (75%) did not need to guarantee
Closed in approximately 60 days

$6.8 Million Multi-Brand Hotel Portfolio Financing

USDA Loan with Low Equity + Built-In Reserves

PHD Financial delivered a highly leveraged USDA structure while helping the borrower overcome

ownership and geographic challenges.

$6.8 million USDA loan
Less than 20% down payment
30-year fully amortized financing
Over $1.5 million allocated for renovations
Built in $100,000+ working capital reserves
Negotiated purchase price reduction with seller
Reduced management company fees through competitive review
Lowered PIP requirements and franchise royalties
Assisted with business licensing for borrower

$9.5 Million Comfort Suites Acquisition – Vero Beach, FL

Closed Despite Government Shutdown

PHD Financial successfully closed this transaction under challenging market conditions, delivering stability and

support throughout the ownership transition.

$9,500,000 SBA 504 loan
Franchised hotel acquisition
Low, fixed interest rate with predictable monthly payments
Interest reserve included to cover payments during transition

$4.4 Million Hotel Refinance – Chicago Airport Market

Reduced Payments by $20,000/Month

A strategic refinance that significantly improved cash flow while returning capital to the borrower.

$4,400,000 SBA 504 refinance
Closed in 60 days from term sheet
Significantly reduced interest rate
Lowered monthly payments by approximately $20,000
$600,000 cash-out to borrower
Stabilized long-term financing for a franchised airport hotel

$2 Million Motel 6 Acquisition – North Dakota

Overcame Borrower Challenges in a Rural Market

This deal required navigating both borrower complexity and rural lending constraints to secure financing.

$2,000,000 SBA 7(a) loan
Over $1,000,000 allocated for PIP improvements
12-month interest-only period
Rural property financing expertise
Structured to overcome multiple borrower challenges

Quality Inn and Super 8

Texas

Structured a purchase of both properties' 1st position notes for a combined discount of $660,000. Negotiated a $200,000 payoff of the $1,240,000 SBA second mortgage on the Super 8 (with release of collateral and personal guarantees), resulting in combined savings of $1,700,000.

Red Roof Inn

Texas

Reduced interest rate from 26.99% to 0% with payment plan for remaining balance of a working capital loan. Modified the second position mortgage, reducing the payment from $5,950 to $1,000 for 12 months, resulting in more than $150,000 in savings to the borrower.

Independent Restaurants Texas & Utah

Negotiated a discounted payoff of two restaurants that were in default and closed. One was discounted $104,000, and the other was discounted $54,000, for a total savings of $158,000; and the complete settlement of all personal liability on the loans.

EconoLodge Missouri

Organized the short sale. Negotiated discounted payoffs of the outstanding 1st and 2nd mortgages, for $46,900 and $652,000 respectively, for a total savings of $698,000; and a full release of all partners' personal guarantees.

Studio 6 Mississippi

Saved $700,000 on SBA 504 by offer in compromise on original balance of $1,000,000.

Quality Inn and Suites Alabama

Saved $1,000,000 on first mortgage of $2,000,000 by negotiating a discount note purchase with arranged take out financing.

Comfort Suites Texas

Negotiated abatement of all interest and CDC fees on SBA 504 loan, saving the client $1.35 million.

Sleep Inn Georgia

Saved $900,000 on SBA 504 on original balance of $1,200,000.

Restaurant Maryland

Saved $1,250,000 by discounted pay-off on original first mortgage balance of $3,300,000.

Holiday Inn Express Texas

Saved $1,200,000 on discount of first mortgage of $6,000,000.

Independent Restaurants Texas & Utah

Negotiated a discounted payoff of two restaurants that were in default and closed. One was discounted $104,000, and the other was discounted $54,000, for a total savings of $158,000; and the complete settlement of all personal liability on the loans.