Property Type:110 Bed Nursing Home Loan Amount: $3,000,000 Loan: Bridge and Permanent Financing
Finance Challenge: The owner of a 110 bed nursing facility was in bankruptcy and needed to secure a loan within 30 days. The problem was created by cost overruns, past due federal taxes ($200,000), and past due trade payables ($500,000). New York Commercial Lending completed the following: (i) evaluated the business and identified ways to reduce monthly expenses by $20,000; (ii) negotiated a $350,000 loan discount; and (iii) secured a bridge loan in 21 days that retired the bank debt, as well as the federal taxes and trade payables. After six months, the bridge loan was refinanced into a 10 year, non recourse loan. Results: Client’s crisis has been solved and the facility is positioned for success.