How to Finance a Sober Living Facility

How to Finance a Sober Living Facility

Owning a sober living home requires compassion and commitment to providing a supportive community for individuals recovering from alcohol and drug addiction. Patients at these facilities are in a vulnerable physical and emotional condition, and require special care in order to feel safe and at home in a transitional environment. It can be a tricky endeavor that requires strong and sensitive management.

Banks have proven difficult when it comes to providing loans to sober living facilities because regulations require them to strictly analyze and make a lending decision based on a borrower’s credit score, tax information, collateral and additional documentation. Also, borrowing from a bank is a long process.

Private loans for transitional homes

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Private vs public funding for transitional homes

sober living lending

Tapping public funds places requires the borrower to agree to a set of rules that will ultimately limit what a rehabilitation center can achieve. For example, the treatments available to clients in facilities financed by public funds may require that every patient receive the same care despite any individual or special needs. While these centers can be more affordable, they may not offer key elements of rehabilitation, such as individual coping mechanisms and therapy sessions.

Luckily, private lenders provide an attractive financing alternative, one that is quick, and once provided, does not place burdensome restrictions on how funds are used. As a result, many owners of sober living facilities are now turning to private and alternative lending for their funding needs. Most owners of sober living facilities have a sincere desire to help those in need, and private lenders allow these owners to implement their vision. That can include gyms, healthy food, vitamin and mineral therapy, as well as other holistic solutions.

While private lenders will ask for documentation on your employment and income history, desired loan amount, facility capacity, insurance policies, and what return you expect to earn, private finance offers a quick and easy alternative to a traditional bank loan. Also, because private lenders are not subject to regulations, borrowing from private lenders means owners can build and offer exactly what they want – offering clients a state-of-the-art rehab center and allowing owners to earn a higher rate of return due to the increased price of staying at one of these facilities.