BeeHive Homes began over 35 years ago with a single location in Meridian, Idaho. The facility was constructed to resemble a residential home, small by design, with 16 to 24 beds and three to four employees who care for residents as though they’re family. It’s an innovative approach for the assisted-living industry, motivated by the original founder’s desire to provide a home-like residence for his own grandmother.
As the business has expanded over the years—to more than 200 franchise locations across 21 states—BeeHive Homes has preserved its approach to making residents feel, quite literally, at home.
A chance to own, but barriers block the way
When the owners of a BeeHive Homes franchise in Utah decided to sell, they knew the best option for the business’ future was one of their own employees.
The sale wasn’t without obstacles, and there were clear challenges to financing the deal. The employee buying the franchise didn’t have the 10% cash down payment to secure SBA financing, she would be a first-time business owner without a track record to show, and the pool of lenders that serve assisted-living facilities is small compared with other industries.
With Byline Bank, the lending process was transparent and direct for both buyer and seller. Byline, a top-five SBA lender in the U.S., is also a preferred lender with the SBA. That means credit and approval decisions are made in-house, without ever needing to submit applications to the SBA and wait for their approval.
Byline’s SBA lending team is about relationships and getting to know the borrowers, sellers and businesses personally. Keith Nigbur, a Byline lender, was able to find a way to execute the loan by drawing on his years of experience financing assisted-living facilities for BeeHive and other customers.
Transparency and collaboration close the deal
Working quickly, Keith determined that the original purchase price was out of reach for the buyer. He proposed a creative solution to make the deal happen. The property included an excess piece of land that wasn’t producing income. Keith recommended the seller remove it from the sale to reduce the purchase price. He also helped broker some of the necessary equity to be financed by the seller.
“Everybody is so hungry for transparency,” said Keith. “And that’s what we deliver. In this case, the cash flow did not work. So we were open with that early on. We worked with the seller to have them parcel off some of the property, and there were a few other accommodations made to get this deal over the finish line.”
For a business that prides itself on creating a family-like atmosphere, it’s a proud milestone to see a longtime employee make the transition into owning one of its franchises.
“For our franchisees, it’s invaluable to work with a lender like Byline Bank who is willing to tailor a business loan to their needs,” says Dennis Toland of BeeHive Homes.
