Frequently Asked Questions
It's ok if you want to talk to us, but just in case we can take care of your questions now, these are some things we're asked often!
A physician (MD, DO, or DPM), or Dentist/Oral Surgeon (DDS or DMD) that needs financing for their investment into an Ambulatory Surgery Center or Dialysis Center.
Maximum loan amount through the online portal is $350,000. If your investment opportunity is going to require a loan amount larger than $350,000 please contact us here
To finance up to 100% (maximum loan amount via website of $350,000) of the equity investment of the investor (See “Who can apply” FAQ) into an Ambulatory Surgery Center or Dialysis Center.
This loan is a commercial loan, and accordingly not reported to any of the Credit Bureaus.
Interested party completes the online application. If the application is approved the applicant will then be able to select their preferred rate & term options based on their application Once the desired rate & term options are selected the Bank will use the documents you upload to verify the application and confirm the approval. The Bank will reach out to the applicant to go over the approval and to request legal documents needed to prepare the loan documents. Those could include purchase agreements, articles of organization and operating agreement related to the entity you are investing in. – Loan documents will be sent to the applicant for their electronic signature – Once loan documents are signed, loan proceeds will be sent to the appropriate entity (operator, entity owner) Loan payments will be automatically drafted from a deposit account at the Bank. – Distributions will come into the associated bank deposit account to make loan payments. – Funds in the associated bank deposit account above the reserve requirement are able to be freely distributed on to the borrower. The reserve requirement is a requirement that the bank deposit account have a balance held in reserve equal to one quarter’s worth (3 months) of the loan payment. This is done so that in the event future distributions are delayed there will be enough funds in the account to cover the quarterly loan payment without the borrower having to fund the loan payment from their own personal funds at their personal bank.
Closing costs may consist of: 1. Origination Fee (equal to ¼% of the amount financed/loan amount) 2. UCC Filing Fees (In the event the borrower sets up an entity (i.e. an Limited Liability Company) the UCC filing fee is the fee the Bank pays to note our lien on the entity’s interest in the ASC or Dialysis center 3. Attorney Fee; fee collected to pay attorney for preparation of loan documents 4. State Indebtedness tax; in some states commercial loans require the Bank to collect a tax that is equal to a portion of the loan amount. The bank then sends that tax on to the appropriate state government.
Yes, the closing costs can be included in your loan amount.
That’s great, and we’re happy to discuss financing with you & your partners. Please contact us here, and we’ll reach out directly to further discuss your opportunity.
There is no penalty for making extra payments towards the outstanding loan principal, or paying the loan off early from personal income and/or cash flow. A prepayment penalty would only be applicable if the loan is refinanced with another lender, or you sell your investment early & subsequently pay off the loan early. The prepayment penalty is as follows: Year 1: 2%, Year 2: 1%, and Year 3: 0.5%.
Yes, as part of the loan closing process a deposit account at our Bank will be set up. The account will be used to receive the distributions from the investment & to automatically make the loan payments.
We’d love to speak with you further about financing options for your ASC/Dialysis center investment if your proposed investment is larger than $350,000. To do so, please contact us here. Our website is only currently capable of processing requests below $350,000, but we have experience financing similar transactions at larger dollar amounts.
Yes, during the closing process we will set you up on our online/mobile banking platform so that you can have real time access to your loan & deposit accounts.
Our interest rates (fixed and variable rate options) are competitive, and are calculated using your personal credit score, income, and current debt obligations.
Available loan term options are 5, 7, and 10 year terms.
In the event you wish to borrow in your personal name then you will be the borrower. If you've set up, or are using, a legal entity (LP, LLC, or trust), then you individually and that entity will be co-borrowers.
Should the distributions be less than the loan payment then you will need to fund the difference to make the loan payment.
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