Bank Consolidation Poses Challenges for Senior Living Communities

|Gray Area of the Law Blog

A representative from specialty investment bank Ziegler recently sat down with Senior Housing News and explained how the fact that nearly half of all U.S. banks have been acquired or gone out of business in the last 20 years poses unique challenges to the senior housing industry.

With that consolidation comes changes to bank lending outlooks, including some that may not favor lending to the senior housing industry. An additional challenge is the delays in lending that occur as merging banks examine their lending portfolios to make sure their mix of commercial and industrial lending doesn’t run afoul of the Office of the Comptroller of the Currency.

That squeeze on credit availability, along with the performance challenges presented by COVID, may leave some senior housing owners out in the cold when it comes time to refinance their existing debt. So, facility owners with loan maturity dates looming would be wise to start the refinancing process earlier than usual.

This article is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read here. Please review the full disclaimer for more information. Relying on the information provided in this article or communicating with Lowndes through our website does not create an attorney/client relationship.

Related Expertise

Jump to Page

We use cookies on our website to improve functionality and collect statistical information on our website traffic. For details on how we use cookies, please see our Privacy Policy. By using this website, you agree to our Privacy Policy and Terms of Use

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. This type of cookie does not collect any personally identifiable information about you and does not track your browsing habits. You may disable necessary cookies by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies (also known as performance cookies) help us improve our website by collecting and reporting information on its usage at an aggregate level. You may disable analytical cookies by clicking on the Manage Cookies button.