New Construction and Permanent Financing
Whether your goal is to acquire or construct a new facility, improve returns on existing assets, or meet other financial goals, we have the expertise and reliability to deliver.
- Adult Day Care Centers
- Assisted Living
- Memory Care Facilities
- Home Health Service Businesses
- Psychiatric Facilities
- Skilled Nursing & Healthcare
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SBA 504 Loans: An Ideal Fit for Assisted Living Communities
The SBA 504 loan is a powerful financing tool that can help business owners purchase, construct, or renovate assisted living communities. With a 504 loan, borrowers can secure up to $5 million in financing, with a maximum of $5.5 million available for projects that meet the SBA’s Go Green criteria.
There are many benefits to using an SBA 504 loan for assisted living communities. First, 504 loans offer long-term, fixed-rate financing, which can help borrowers budget for the future. Second, 504 loans require only a 10% down payment, which can save borrowers significant money. Third, 504 loans are backed by the SBA, which can make them more attractive to lenders.
SBA 504 loans can be used for a variety of purposes in assisted living communities, including:
Purchasing land and buildings
Financing construction or renovation
Purchasing equipment
Making energy-efficient improvements
If you are considering financing an assisted living community, an SBA 504 loan is a great option to consider. With its long-term financing, low down payment, and SBA backing, a 504 loan can help you build or improve your assisted living community and achieve your business goals.
New construction: SBA 504 loans can be used to finance the purchase of land, construction costs, and equipment for new assisted living communities.
Renovations and remodels: SBA 504 loans can also be used to finance renovations and remodels of existing assisted living communities. This can include adding new wings, expanding medical services, adding more equipment, or remodeling rooms to make them more accessible.
Go Green program: The SBA’s Go Green program offers additional funding for assisted living communities that implement energy-efficient improvements. This can include replacing old equipment with more efficient models, installing solar panels, or making other changes to reduce energy consumption.
For those looking to construct or enhance an assisted living community, the SBA provides a maximum loan amount of $5 million, which increases to $5.5 million if implementing green efficiencies is a priority. While there is no limit on the total project cost, the loan can be utilized for various purposes:
New Construction:
Acquiring land for the building and surrounding recreational areas.
Covering expenses related to materials, labor, and equipment with a service life of 10 or more years, such as bed lifts, elevators, and emergency defibrillators.
Funding essential assisted infrastructural elements like wheelchairs, patient call systems, and specialized HVAC systems designed for resident comfort.
Renovations and Remodels:
Financing renovations and remodeling of existing assisted living communities, including adding wings or expanding medical services to reduce hospital visits.
Investing in additional equipment to accommodate a growing resident population and remodeling rooms for improved accessibility.
Expanding food service and prep areas to cater to more residents and diversifying recreational offerings.
Establishing rehab facilities connected to existing buildings or on the current campus.
Boosting Funding for Assisted Living:
Qualified communities can enhance their funding opportunities by participating in the SBA’s Go Green program. This program raises the SBA’s maximum contribution from $5 million to $5.5 million per project. Business owners can potentially receive up to $16.5 million across multiple projects by meeting specific criteria:
Energy Efficiency Requirements:
Demonstrating a reduction in building energy use by 10%.
Purchasing a new building that will utilize 10% less energy.
Replacing 10% of the community’s current energy consumption with renewable energy sources like solar, wind, or geothermal power.
HUD FHA Section 232 and Section 232/223(F) Loans
HUD FHA Section 232 and Section 232/223(F) Loans are mortgage insurance programs that are designed to help finance the construction or rehabilitation of affordable rental housing, including nursing homes, assisted living facilities, and board and care facilities.
Section 232 Loans
Section 232 loans are available for the purchase, refinance, new construction, or substantial rehabilitation of residential healthcare facilities. The maximum loan amount for a Section 232 loan is $5 million. The interest rate on a Section 232 loan is fixed for the life of the loan. There is no prepayment penalty on a Section 232 loan.
Section 232/223(F) Loans
Section 232/223(F) loans are a type of Section 232 loan that are specifically designed for the construction or rehabilitation of nursing homes and assisted living facilities. The maximum loan amount for a Section 232/223(F) loan is $10 million. The interest rate on a Section 232/223(F) loan is fixed for the life of the loan. There is no prepayment penalty on a Section 232/223(F) loan.
Benefits of HUD FHA Section 232 and Section 232/223(F) Loans
There are a number of benefits to using HUD FHA Section 232 and Section 232/223(F) loans, including:
- Low interest rates: The interest rates on HUD FHA Section 232 and Section 232/223(F) loans are typically lower than commercial rates.
- Long terms: The terms on HUD FHA Section 232 and Section 232/223(F) loans can be up to 40 years, which can provide borrowers with the financial flexibility they need to repay the loan.
- No collateral: HUD FHA Section 232 and Section 232/223(F) loans do not require borrowers to provide collateral, which can make it easier to qualify for a loan.
- Funding for green projects: HUD FHA Section 232 and Section 232/223(F) loans offer additional funding for projects that meet the HUD’s green criteria. This can be a valuable benefit for borrowers who are looking to reduce their environmental impact.
HUD FHA Section 232 and Section 232/223(F) Loans can be a valuable financing option for developers who are looking to finance the construction or rehabilitation of affordable rental housing, including nursing homes, assisted living facilities, and board and care facilities. The programs offer a number of benefits that can help borrowers save money, grow their businesses, and make their communities more sustainable.
USDA Community Facilities Loan Program
The USDA Community Facilities loan program is a game changer for financing memory care and other healthcare facilities in eligible areas:
- Low interest rates: The USDA Community Facilities loan program offers fixed interest rates that are typically lower than commercial rates.
- Long terms: The USDA Community Facilities loan program offers terms of up to 40 years, which can provide borrowers with the financial flexibility they need to repay the loan.
- No collateral: The USDA Community Facilities loan program does not require borrowers to provide collateral, which can make it easier to qualify for a loan.
- Eligible for rural areas: The USDA Community Facilities loan program is available to borrowers in rural areas, which can be a significant benefit for memory care facilities that are located in these areas.
- Funding for green projects: The USDA Community Facilities loan program offers additional funding for projects that meet the USDA’s green criteria. This can be a valuable benefit for memory care facilities that are looking to reduce their environmental impact.
Overall, the USDA Community Facilities loan program can be a valuable financing option for memory care facilities. The program offers a number of benefits that can help borrowers save money, grow their businesses, and make their communities more sustainable.
Here are some additional details about the USDA Community Facilities loan program:
- The program is available to borrowers who are located in rural areas with a population of 20,000 or less.
- The program can be used to finance the construction, renovation, or expansion of memory care facilities.
- The program can also be used to finance the purchase of equipment and land for memory care facilities.
- The maximum loan amount for the USDA Community Facilities loan program is $5 million.
To learn more about the USDA Community Facilities loan program, please contact us for a consultation.
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1020 Milwaukee Ave, Suite 230
Deerfield, Illinois 60015