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A 2017 study sponsored by the American Association of Retired Persons and other nonprofit organizations found that the quality of long-term care in the United States was getting better overall, although <\/span>it was \u201cuneven, slow progress.\u201d<\/span><\/a> In the study, California was ranked ninth out of the 50 states and Washington, DC for care services, scoring above the national average for all quality of life and quality of care indicators. <\/span><\/p>\n The authors of the study expressed concern that there would be a serious shortage of facilities within the next decade \u201cwhen the boomers begin turning 80.\u201d This should be a call to action for owners of assisted living facilities who are thinking about expanding. Expansion is often a sound decision for assisted living businesses, and there is more to motivate it than simply meeting demand. The assisted living industry is in transition due to a number of simultaneous processes. Increasing demand is only one of them.<\/span><\/p>\n If you are a Californian small business owner in this field, \u00a0you are most likely aware of the rapid growth of the assisted living market. Those wanting to remain competitive in the field and also compliant with regulations should familiarize themselves with the Small Business Administration (SBA) 504 loan. Its advantageous terms can help you expand your reach in this competitive market.<\/span><\/p>\n Not only are their numbers increasing, residents of care facilities are becoming more demanding and showing more complicated needs. As a result, the distinctions between independent living facilities, assisted living facilities and nursing homes are becoming blurred. Assisted living facilities are being stretched in both directions, providing more options to enhance quality of life that had previously only been features of independent living and support services or nursing homes. <\/span><\/p>\n Analysts say that, in this complex and competitive market, <\/span>small facilities are being squeezed out by larger operators<\/span><\/a>. The reasons for this are purely economic: assisted living facilities have high fixed costs, and it is more profitable to spread them across a larger operation. This is one reason for small business owners to expand facilities. Also, besides providing more beds, new construction fills the common need to make cosmetic enhancements to campuses and allows owners to equip the facilities with modern technology. All this creates a more inviting and convenient atmosphere that meets the greater demands of today\u2019s residents. As industry expert Jim Moore put it, the business is <\/span>becoming more sophisticated<\/span><\/a>. <\/span><\/p>\n The changing situation puts pressure on state regulators as well. Federal regulations cover only facilities that accept Medicaid and Medicare, leaving it to the states to control the majority of care facilities alone. The <\/span>AARP has shown the efficacy<\/span><\/a> of state regulation in maintaining quality of care, but Moore has noted that state regulations may lag behind industry trends.<\/span><\/p>\n Meeting <\/span>state regulations is not simple<\/span><\/a>. You will need to show your market research to justify your decision to build at a specific location, and you may need engineers, architects or lawyers to support your findings. Once your building is completed, it will have to pass fire and health department inspections and conform to other codes. Finally, your administrators and staff will need to meet minimum training requirements.<\/span><\/p>\n Thankfully, there are appealing financing options for expansion that will help you up your competitive edge and stay on top of regulation requirements. Banks are generally willing to work with assisted living businesses and they are particularly willing \u00a0on 504 loans since it means less risk for the bank. A 504 loan is a partnership between a conventional lender, a Certified Development Company (CDC) and the borrower. It has three parts:<\/span><\/p>\n <\/p>\n [\/vc_row][vc_row][vc_column][vc_round_chart type=”doughnut” stroke_width=”2″ values=”%5B%7B%22title%22%3A%2250%25%20Conventional%20lender%22%2C%22value%22%3A%2250%22%2C%22color%22%3A%22blue%22%2C%22custom_color%22%3A%22%235aa1e3%22%7D%2C%7B%22title%22%3A%2235%25%20CDC%22%2C%22value%22%3A%2235%22%2C%22color%22%3A%22sky%22%2C%22custom_color%22%3A%22%23ff9900%22%7D%2C%7B%22title%22%3A%2215%25%20Borrower%22%2C%22value%22%3A%2215%22%2C%22color%22%3A%22green%22%2C%22custom_color%22%3A%22%2300c1cf%22%7D%5D”][\/vc_column][\/vc_row]<\/p>\n The 504 Program, created to help small business owners grow, will provide you the financing you need with affordable terms. The loan features a down payment requirement of only 15%, a long-term, below market fixed interest rate, and no additional collateral required. \u00a0Funds from a 504 loan can be used for:<\/p>\n You will find it helpful to prequalify for your 504 loan<\/a>. Prequalifying is not the same as applying, but it will give you an idea of what to expect from a 504 loan. Knowing in advance how much down payment your loan may require, what your spending capacity is and how much total financing you may receive will give you an advantage in discussions with property sellers, contractors and city agencies. Prequalification usually takes 48 hours or less, and TMC Financing averages 18 hours.<\/p>\n The SBA Green Energy Program is often a good fit for assisted living facilities as well, since they tend to consume large amounts of energy. Borrowers can qualify for the program by:<\/p>\n The Green Energy Program allows the borrower to exceed the traditional project limit on SBA funding. Since it results in significant energy savings for the building owner, it saves the business money as well.<\/p>\n You can find out more about how a 504 loan can help you finance the expansion of your assisted living business by talking to one of TMC\u2019s 504 loan experts. TMC Financing<\/a> is a leading CDC in California and Nevada. Contact TMC today<\/a> for more information, to prequalify for a 504 loan or to begin the 504 loan application process.<\/p>\n <\/p>\n\n","protected":false},"excerpt":{"rendered":" Assisted living facilities are being stretched in both directions, providing more options to enhance quality of life that had previously only been features of independent living and support services or nursing homes. <\/span><\/p>","protected":false},"author":24,"featured_media":7804,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[141,178],"tags":[],"class_list":["post-7803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","category-sba-101"],"acf":{"related_posts":null},"yoast_head":"\nThe Emerging New Paradigm of Care<\/b><\/h3>\n
Funding the Expansion of Your Care Facility<\/b><\/h3>\n
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