Bridge Loan Success

[Karen Schimpf]

Bridge Loan Success

Our borrower, an experienced healthcare operator with a strong 700 credit score, identified a prime opportunity to expand her business by acquiring an underperforming assisted living community in Las Vegas, NV. With an aging population and increasing demand for quality elder care, this acquisition aligned perfectly with her strategic goals. The property’s purchase price was $5 million, and she was eager to transform the facility into a high-quality, profitable residence for seniors.

The Challenge

Though the borrower had a successful track record, securing an SBA loan for the acquisition proved challenging due to limited operational history. She had launched her initial healthcare business in 2020, navigating through the pandemic, and had shown solid growth in 2021 and 2022. However, her tight deadline from the seller left her without enough time to gather the required tax returns for SBA approval. The seller needed to close within a month, and to complicate matters, the borrower was up against a deadline to apply for a state grant designed to support assisted living facilities, with a filing cutoff just days after the sale deadline.

The Bridge Loan Solution

To help her take advantage of this time-sensitive opportunity, we structured a bridge loan to meet her immediate financing needs. Given the high-potential property, her excellent credit, and proven industry experience, we were able to offer her a bridge loan at an impressive 85% loan-to-value (LTV). This allowed us to finance $4.25 million of the $5 million purchase price, providing her with the capital needed to secure the property while maintaining liquidity for essential upgrades.

Structuring for Speed and Flexibility

With an interest-only payment structure, her bridge loan remained affordable as she enhanced the community's offerings, enabling the borrower to focus on increasing occupancy rates and improving care quality. The exit strategy was straightforward: once her tax filings for 2021 and 2022 were finalized, she would refinance into an SBA loan, a process we are actively supporting to facilitate her transition to more permanent financing. With the high LTV, quick funding, and our streamlined closing process, we were able to meet the seller's 3-week closing requirement and keep her grant application on track.

The Outcome

Our borrower successfully closed on the $5 million property and immediately began implementing her plans to revitalize the assisted living community. With the bridge loan’s flexible terms and rapid funding, she’s on the path to transforming the community into a sought-after elder care facility in Las Vegas. The seller achieved their desired timeline, and the borrower now has the resources to expand her business with confidence. Realtors involved in the transaction were pleased to see the timely close, and we look forward to assisting her with the SBA refinancing process for long-term stability.

By providing swift and flexible financing, this bridge loan empowered our borrower to capture a valuable opportunity, reinforcing our commitment to helping entrepreneurs and healthcare providers meet the demands of today’s fast-paced market.

Give us a call today to discuss your commercial finance needs or get started by filling out this form!

Karen Schimpf

(512) 358-1511

[email protected] 

www.ApplyCommercialLoans.com 

P.S. For business owners and investors needing swift access to capital for real estate acquisitions or short-term projects, SBA loans offer a robust financing solution with favorable terms. Unlike traditional financing, SBA loans combine flexibility with competitive rates, helping you secure funding while meeting critical deadlines. Connect with us to discuss how an SBA loan can support your growth—call us at 512-358-1511!