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Commercial Financing for Assisted Living and Skilled Nursing Facilities
Provide more care with affordable financing from Celtic Bank
Apply nowCOMMERCIAL FINANCING FOR LONG-TERM CARE FACILITIES WITH CELTIC BANK
Buy, Build or Upgrade a Long-term Care Facility
The need for assisted living and skilled nursing facilities will only continue to grow as Boomers age. Despite demand, many lenders are put off by the unique hurdles of financing this management-intensive industry. Since 2002, we helped long-term care facility owners and operators get the funding they need to thrive.
Our assisted living and skilled nursing projects often blend conventional and SBA funds that are popularly used as high-leverage bridge loans. With this kind of affordable financing, owners and operators can stay competitive and diversify revenue streams through expanding services, hiring more experienced staff or building or renovating facilities
As leaders in the industry, you can rely on our team to take the hassle out of long-term care financing. This allows you to focus on what really matters: providing better care for more people.
Partner with a lender that knows your business today.
Commercial Financing Details for Long-Term Care Facilities
With lower rates and longer repayment terms, SBA 7(a) loans are an ideal commercial financing option for most long-term care facilities. From nursing homes to skilled nursing centers, to residential group homes and adult daycare facilities for seniors, you can use an SBA 7(a) loan to finance it.
As a preferred SBA lender, we can approve loan applications in house, accelerating your time to funding. And unlike like other SBA lenders, we can fund larger projects up to $10M with a creative combination of conventional financing, SBA 7(a) and the USDA’s B&I loan programs.
Further, the 7(a) loan has an intentionally short prepayment penalty: 5% in the first year, 3% in the second year and 1% in the third. Borrowers can take advantage of this short prepayment period to quickly and easily fund their project with a 7(a) loan and keep other loan options open for later.
With SBA 7(a) Financing Get:
- Rates at, or below prime + 2.75%
- Up to 85% loan-to-value (LTV)
- Up to $10M in funding
- Terms up to 25 years
- No balloon payments
- No application fees
USES OF LONG-TERM CARE COMMERCIAL FINANCING
Get What You Need—and When You Need It
With the lower rates and longer repayment periods of an SBA 7(a) loan, you get the cash you need to resolve the challenges of a running a long-term care facility, while still having the cash to grow. You can use an SBA 7(a) loan to:
Buy an existing long-term care facility
Start construction on a new location
Update and refurbish an existing building
Refinance debt
Hire experienced staff
Expand and diversify services
Bridge finance your project
RECENTLY FINANCED LONG-TERM CARE FACILITIES
Let Celtic Bank Fund Your Long-Term Care Facility
LONG-TERM CARE FINANCING CASESTUDY
Don’t Just Take Our Word for It
FAQ
Frequently Asked Questions for Long-Term Care Financing
How does blending SBA 7(a) and conventional financing work?
First, the bank typically funds a portion of the transaction using a $5M SBA 7(a) loan. Simultaneously, the bank uses its own conventional funding to cover the project’s remaining costs—to a maximum of $3M (for a total financing of $8M). These two bank loans are typically in a Pari-Passu structure, which are in equal senior lien positions
Are underwriting guidelines the same with this hybrid loan structure as compared to stand-alone SBA 7(a) loans?
Why is this hybrid structure so popular? What are the benefits?
OK, but what else should I know?
