Hawaii Recovery Treatment, LLC

The Opportunity

In 1990 Scott started his journey to sobriety at a drug rehab center and he has remained sober for over 32 years. Rehab saved his life and beginning in 2012 he started dreaming of giving others the gift of sobriety. Rehab is usually only affordable for the average American if the facility accepts insurance. Unfortunately, most drug treatment centers are cash only and don’t take insurance. To qualify for insurance coverage, facilities need to pass an arduous licensing process.  

In an attempt to realize his dream, Scott started a rehab center with investors on Maui Island. However, they were unable secure the licenses needed to accept insurance — despite trying for four years. But Scott refused to give up.  

Instead, he decided to buy one of the three treatment centers in Hawaii that are licensed to accept insurance payments. The treatment center had capacity for 8 to 9 patients and sat on 30 acres overlooking the Pacific Ocean. Now he just needed a lender that would finance the purchase.  

The Challenge

Finding a lender turned out to be harder than expected. Scott called every broker, credit union, and local and national bank he could find. Finally, a man at Finance Integrity on the big island threw him a bone and recommended a broker. And that broker then recommended a loan officer at Celtic Bank.  

Connecting with Celtic brought new energy to the project. Scott was finally working with a lender experienced in financing medical care facilities. Celtic successfully helped Scott navigate the SBA loan process and made his dream of owning both the business and real estate for a rehab center a reality.  

Due to the strong real estate value and the borrower’s deep industry experience and unique personal dedication, Celtic Bank was able to extend financing via two SBA 7(a) loans. A loan of $1.9M with a 25-year term was extended for commercial real estate. Another loan of $1.8M with a 10-year term was extended to purchase the operating business. 

The Solution

In the year after Scott took over the business in 2021, he stabilized revenues and the center is actively accepting insurance clients. One recent patient at the center is a 22-year-old man who, without insurance, would have never been able to afford treatment. Because of Celtic, Scott is finally able to share the gift of sobriety; he is paying it forward.