AAHOA’s support of the LIONS Act
In February, 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. While the road ahead is long, 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.
WHY IT MATTERS
Currently, SBA 7(a) and 504 loans are currently capped at $5M, which was last set in 2010.
For AAHOA Members, during the past decade, 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.
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.
“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 AAHOA 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. 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.” – AAHOA President & CEO Laura Lee Blake
“…We applaud the introduction of the LIONS Act, introduced by Congressman Shri 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.” – AAHOA Immediate Past Chairman Bharat Patel
“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.” – Congressman Shri Thanedar (MI-13)
