Refinancing
Guaranteed Lending Specialists recently arranged a $870,000 USDA Business & Industry (B&I) Guaranteed Loan to refinance the debt secured by an Assisted Living and Memory Care facility located in Arkansas. This financing enabled the borrower – an experienced operator with several other senior living properties under management -- to take out higher cost non-bank lender financing that was put in place while the facility was in the midst of a turnaround. Guaranteed Lending Specialists was approached on this assignment by a local banking partner that had an existing relationship with the operator but needed to leverage Guaranteed Lending Specialists expertise with the USDA to get the deal closed in a timely manner. One of the challenges on this deal was the facility did not show profitable operating history – during the early years of the turnaround the facility lost money and was highly leveraged. The operator, through his stellar reputation with Arkansas CMS, was able to transition the facility into a Medicaid eligible property and dramatically increase occupancy. This led to short-term profits and a path to long-term sustainability that had to be communicated thoughtfully to USDA to bring the deal to closing.