What does the abbreviation PLP stand for in reference to hotel/motel acquisitions?

In Buying Property - Asked by Jack M. - Jun 22, 2016
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Everett Allen G.
Los Angeles, CA

Generally, for all property types, PLP means Preferred Lender Program, and very common when referring to going concern properties with SBA financing.. For hotels, they also have a similar acronym, PIP, property improvement plan, with one program to maintain a flag, and a much more expensive alternative if you sell the property. The franchisor can force any improvement plan down your throat. If you don't like it, they take the flag away.

Jun 22, 2016
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Chris M.
Kansas City, MO

Hi Jack, the PLP is the SBA's "Preferred Lender Program" and those direct lenders, both bank and non-bank, can participate in the program with approval from the SBA. A PLP lender has delegated credit decision authorization from the SBA. Therefore, the PLP lender can approve an SBA loan request internally which in some cases shortens the approval process for the borrower. An SBA guaranteed loan is frequently utilized to finance hospitality properties because higher leverage is possible (85% LTV). I work with many PLP lenders and know which provide the fastest responses. Please contact me if you have any questions.

Jul 20, 2016
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