OptimumBank’s new loan program could create a franchise-style model for small SNFs

At a time when some small independent skilled nursing operators struggle to remain viable businesses, Florida-based OptimumBank plans to enter the skilled nursing lending space, which could give some small operators in trouble a chance to stay in the game a bit longer.

With occupancy still falling for the skilled nursing industry and the last provider relief fund issued, OptimumBank chairman Moishe Gubin believes the bank’s new focus on health care for people elderly people come at the right time.

“These are mostly accounts receivable loans across the country,” he explained. “It is primarily intended for small operators who are struggling to find a bank willing to lend smaller loans. “

Gubin said the bank wants to have a portfolio that will likely end up with between $ 30 million and $ 60 million in loans initially, with typical loans ranging from $ 500,000 to $ 2 million.

“You are talking about a loan portfolio of 25 to 50 loans,” he said.

The first Optimum senior health care facility loan was made in Rhode Island, the second was for a facility in Texas, and the third was for an operator in Illinois.

Gubin is also CEO of Strawberry Fields REIT, a growing player in the SNF space, and director of healthcare consulting firm Infinity Healthcare Management, LLC. He thinks the new loan program can present a kind of one-stop-shop for operators, “almost like a franchise model.”

“Strawberry can buy an asset or own an asset, we could lease it to some operator who puts the skin in the game, then Infinity can provide advice and OptimumBank could provide funding,” he said.

Gubin said putting these three together could create a valuable product for operators across the country, especially smaller independents.

“One of the barriers to entry for the single operator is, for example, that he does not have the option of hiring a nurse consultant. A mom and a dad don’t have these resources, ”he explained. “There is potentially a single owner / operator model here where I can, even though they are different entities, have an owner, advisory and banking services under one franchise agreement. and I would be able to offer these services to [mom and pops] and be a resource for them.

So far Optimum has approved $ 30 million for the first tranche of loans, but Gubin thinks it might just be the start.

He wants to see “controlled growth” before expanding.

“By the end of 2022 we will probably hit our first number and then double it or more than double it for next year and further develop the department and we’ll go from there,” he added.

Optimum also recently added Michael Blisko, CEO of Infinity Healthcare Management of Illinois and Infinity Healthcare of Indiana, and Michael Johnson, Senior Commercial Healthcare Lender, to its Board of Directors, to the team at Optimum. ready.