SBA lender Live Oak Bank has been hard at work recently arranging coronavirus relief loans through the Paycheck Protection Program, but the bank also announced a couple of SBA loans that closed earlier this year. First, Live Oak secured acquisition financing for a partnership to buy a 37-unit assisted living community in the town of Shohola, Pennsylvania (in the northeastern part of the state near the New York border). Previously owned and operated by a local individual, the stabilized community was built in 1990 on a 16-acre site. It is the first property directly owned by the acquirer. To fund the deal and limit the equity requirement of the borrowers, Live Oak provided a $5.2 million loan, at 88% of the cost, with a pari-passu structure. There is a variable interest rate over a 25-year term.
Then, Live Oak also closed on construction financing for a 65-unit assisted living/memory care community in Calhoun, Georgia. The transaction was closed in February, so we’re not sure how development plans or costs may have changed in the last month, but the local developer/owner/operator expects to open it by January 2021, making it their second location in the state. The $9.9 million SBA loan provides for 80% of the project’s financing and came with a 26-year fully amortizing loan plus a 27-month interest-only period. It was also coupled with a balance sheet pari-passu loan.
