Small Business Spotlight
The right lender for an unpredictable small business acquisition
Nobody likes surprises on the road to becoming a small business owner. Surprises, along with both steep financial and human dependencies, meant a lot was riding on this deal’s successful closing.
Loan Amount
$2,198,400
Loan Purpose
The Small Business
WeCare Assisted Living, LLC
Denver, CO
![denver, colorado, city-2230512.jpg](https://readycapital.com/wp-content/uploads/2023/05/denver-colorado-city-2230512-1024x653.jpg)
The Financing Challenge
The small business acquisition for WeCare Assisted Living in Denver was anything but straightforward. As the team advanced through the deal stages, they made several unexpected discoveries: The seller was no longer actively running the business, the inspection revealed significant unforeseen issues, and both sides were understandably eager for a resolution. Without extraordinary perseverance, the deal simply couldn’t be accomplished.
Loan Scenario
Here's what our borrowers brought to Ready Capital
Surprise inspection report findings
An inspection revealed $100,000 worth of deferred maintenance, and a total of $750,000 worth of work outside of the deal buyer-seller agreement.
Additional unforeseen costs
The fire suppression bid came in over the estimate.
Ticking clock, high stakes
Residents were still onsite, and the state of Colorado’s laws called for a go-forward plan without delay.
CREATIVE SOLUTION
Despite a long journey with many moving parts, Ready Capital maintained near-daily communication with the borrower and navigated every bump in the road. The BDO and team were able to take an in-jeopardy deal and transform it into an investment with an upward trajectory for the borrower.
Reliable Results
- Locked in $2,198,400 of SBA 7(a) financing to cover the 30-bed facility acquisition.
- The deal included an inspection resolution for seller to cover deferred maintenance.
- The owner was able to take over the property by the end of the year, and it had appreciated in value from $2.8M to $3.2M.
The Non-Bank SBA Preferred Lender Difference
A small business loan is not an empty box like a checking or savings account. No two small businesses are alike when it comes to their financing needs. This means that small business financing requires out-of-the-box thinking and capabilities many banks simply can’t offer.
Ready Capital is a non-bank, SBA preferred lending partner (PLP). We speak fluent small business and have the process in place to help them reach their goals the first time.