Assisted Living

Empowering Independence with Dignity

With the aging population growing rapidly, the need for high-quality, accessible assisted living facilities has never been greater. However, financing these critical facilities, especially in rural and underserved areas, presents significant challenges. The USDA’s Business & Industry (B&I) Loan Guarantee Program offers a pathway to addressing this gap, providing loan guarantees that enable assisted living providers to expand, upgrade, and sustain operations.

Evolving to the changing needs of seniors, a range of services and amenities can be funded into reality, from medical to recreational. With long-term financing in place, operators can more easily ensure residents enjoy their senior years in an environment that respects independence, promotes well-being, and enhances quality of life.

Highlights

  • Typically 100% of new project costs, including land, hand & soft costs, and working capital are eligible for USDA loan guarantees

  • One loan to cover construction through to permanent financing, with up to 24 month interest only

  • No restrictive covenants, no call provisions, no balloon payments, long-term amortizations

  • Acquisitions of existing facilities are eligible

  • Eligible for B&I ($25M per applicant)

USDA Loan Guarantee applications for the assisted living industry

Facility Construction and Expansion

  • New Facilities: Financing the acquisition and/or construction of new assisted living facilities in underserved rural areas to address gaps in senior care.

  • Facility Expansion: Adding new rooms, therapy areas, or community spaces to accommodate a growing resident population and enhance services.

Renovation and Modernization

  • Upgrades for Safety and Comfort: Renovating existing facilities to improve resident safety, comfort, and accessibility, including installation of elevators, ramps, and updated fire safety systems.

  • Technology Integration: Implementing smart home technologies and medical alert systems to enhance resident care and facility efficiency.

Specialized Care Facilities

  • Memory Care Units: Developing specialized wings or facilities to support residents with Alzheimer’s, dementia, or other cognitive conditions.

  • Therapeutic Spaces: Building physical therapy and wellness centers to support residents’ health and mobility.

Equipment and Technology Acquisition

  • Medical Equipment: Purchasing advanced healthcare equipment to provide high-quality care on-site.

  • Operational Technology: Acquiring software for resident management, billing, and scheduling to improve administrative efficiency.

Debt Refinancing and Working Capital

  • Debt Consolidation: Refinancing existing loans to reduce financial strain and improve cash flow.

  • Operational Costs: Providing working capital to cover payroll, utilities, medical supplies, and other day-to-day expenses.

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