How to Use Your Medical Real Estate Debt for Operating Shortfalls

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Many groups’ needs were not fulfilled by the forgivable SBA loans…

and many have looked to their banks to secure loans to fill the current operating shortfall. The repayment of this short-term debt will result in large payments – at a time the practice can least afford it.

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With the equity in your real estate, pay back the short-term financing…

with long term-debt from the real estate. The difference can be quite meaningful.

A $5 million note, to be paid back over 24 months, will require monthly payments of $216,000. The same amount paid back under the terms of the real estate loan would be approximately $26,000 per month. 
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Many lenders are still actively competitive…

however, bank-implemented floors and liquidity premiums can create substantial non-apparent costs that the borrower may not initially realize. 

CMAC is here to advise you, without charge, on the options and structures that may be available to your group. Email sirena@cmacpartners.com or call 407-264-7258.