I certainly can't speak for all banks, but if you insist on going small loan commercial you're likely to find the best bet at the smallest banks you can find. maybe a credit union.

I operate my own REIA group and I have people contact me all the time for that exact reason.Happy InvestingDerek Dombeck

Is there a discrimination concern or a procedure or exception(s) to follow in order operate as such? 

I’ve been listening, learning an taking notes on how this business is done an I’m on the road to becoming  a landlord an learning how to run this operation correctly.

I deal with more protection for my business since I'm a contractor but this seems a bit overkill.Carrier: ScottsdaleSix-Month Premium: $1179.5625% minimum earned premiumCoverages & Limits:Commercial Property: $125,000 Building Limit – Special Form excluding theft; $2,500 deductible; Replacement Cost Coverage; 80% CoinsuranceCommercial General Liability:$1,000,000 each occurrence; $2,000,000 aggregate limitProducts-Completed Operations Excluded; Designated Premises/Project Limitation included.Conditions: All subs must carry equal or greater limits of liability naming insured as Additional Insured, hold harmless contract in favor of insured, with Certificates of Insurance.Thank you in advance for your consideration.

Second you must learn to operate your business as a business.

The days the angel investor realize they are betting on non-profitable companies in SFBA are not too far.

Even if you have to look outside of your immediate area to make that happen, that may be the best bet.

I'd imagine selling + 1031 exchange would be your best bet, although you can probably get an 80% ltv line of credit through Penfed if you want a different route.

Do I need a business license to operate a STR?