Your Advocacy Matters: AAHOA Applauds the Introduction of the LIONS Act, Which Would Increase SBA Loan Limits

On Tuesday, February 13, 2024, AAHOA Chairman Bharat Patel released the following letter:

AAHOA Members: 

As I’m sure you are aware, AAHOA has long advocated for increases to SBA loan limits. We’re pleased to report this week Congressman Shri Thanedar (MI-13) announced the introduction of the "Loans In Our Neighborhoods (LIONS) Act," a bill designed to amend the Small Business Act by increasing the maximum gross loan amount for section 7(a) loans, from $5M to $10M, which would provide greater financial support to small businesses.

This legislation is now being referred to the appropriate House Committee thanks to the leadership of Rep. Thanedar, but we also have you to thank; it is because of your persistence, your advocacy, and your connecting with lawmakers to showcase the need for this legislation that we are where we are today.

We want to take a moment to thank AAHOA Florida Regional Director Chetan (Chris) Patel, who is Chair of the AAHOA SBA Ad Hoc Committee. Together with the committee, he has worked tirelessly to advocate for change.

While there is a long road ahead, this is the first of many necessary steps to help hoteliers obtain access to capital, allowing them to operate and thrive in a challenging economy. We applaud your efforts in advocating for this important legislation, and we’re grateful to announce that AAHOA is making big things happen for you in Washington.

Why it Matters

• Currently, Small Business Administration(SBA) 7(a) and 504 loans are currently capped at $5M, which was last set in 2010.
• For AAHOA Members, over the past decade and especially in a post-pandemic world, the costs of doing business, constructing hotels, and purchasing properties have skyrocketed.
• In 2024, the value of hotel properties is significantly higher than the current loan limits, leaving substantial collateral for higher loan amounts.
• AAHOA has been at the forefront of this issue for quite some time, and we applaud the introduction of the LIONS Act, by Congressman Thanedar.
• If passed into law, increasing SBA loan limits from $5M to $10M has the potential to constitute some of the most impactful legislative measures affecting hoteliers in the foreseeable future.

Deeper Dive | Statement from AAHOA President & CEO Laura Lee Blake 

“For the past months, AAHOA has persistently advocated for the increase of SBA Section 7(a) loan amounts, which were last established at $5M nearly 15 years ago. On behalf of our AAHOA Hotelier Members, we have urged lawmakers to raise the SBA loan limits to $10M to align with the prevailing economic conditions, thereby fostering a sustainable business model for the future.

AAHOA expresses gratitude for the leadership of Congressman Shri Thanedar, who recently announced the introduction of the Loans In Our Neighborhoods (LIONS) Act. We celebrate the introduction of the LIONS Act because AAHOA is moving the ball forward on behalf of the owners in the industry. It is always a joy when our diligence pays off and elected officials take note of the tremendous economic impact that our members have in this country.

If enacted, this legislation will afford AAHOA Members, as well as entrepreneurs across the U.S., increased opportunities to propel economic growth in virtually every city across the nation.”

Deeper Dive | Statement from Congressman Thanedar

By introducing the LIONS Act, we are taking a significant step to bolster the resources available to the small business community in Michigan and across the country. This Act is about ensuring that the financial needs of small businesses are adequately met, allowing them to continue driving our economy and creating jobs."

Thank you for your support and trust in AAHOA. We look forward to keeping you informed as the legislation moves forward.

AAHOA Chairman Bharat Patel