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Continued From Page 44 TD Bank By Dan Croft , Head , Healthcare Practice Solutions Group ( HPSG )
Before COVID‐19 , standard healthcare loan package requirements included historical financials , applications and practice profiles . Due to COVID‐19 ' s impact , banks are now requesting additional updated , important performance data including 2020 monthly collections and profit and loss reports , comparing pre-COVID and shutdown months to the months since the practice fully reopened for normal operations . Industrywide , bankers are asking customers about the number of patients seen per day , percentage of patient appointment cancellations as compared to pre-COVID‐19 , how they have implemented enhanced hygiene and safety protocols and contactless operations . Healthcare lenders also have an increased focus on recent credit reports and are asking about existing lines of credit and their balances to ascertain how much the business may have needed to borrow during the pandemic , increasing debt and leverage ratios and are working with customers to confirm their U . S . Small Business Administration Economic Injury Disaster Loan and PPP loan balances , forgiveness status and plans to apply for the new round of PPP lending . Along with this additional due diligence , we continued to lend in this challenging economic environment , and new loan origination grew 35 percent in 2020 , as compared to 2019 , as healthcare practices continue to demonstrate their stability and resiliency during this pandemic .
Valley Bank By Elizabeth Butler , First Senior Vice President , Director of Healthcare Lending
Banks are working with customers to confirm their U . S . Small Business Administration Economic Injury Disaster Loans .
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My strongest advice is that historical numbers are not indicative of what the future will hold , which would not be true under normal circumstances . Today , with elective procedures in medical facilities and visitation to the elderly being restricted in long-term care facilities , healthcare professionals need to plan for things that are beyond their control . We have worked with several operators to provide them with a line a credit for the temporary reduction in cashflow while their revenue is impacted due to restricted capacity under the COVID‐19 pandemic . In some instances when a term loan is being secured , lengthening the term will provide the needed cashflow relief . Medical professionals need to be realistic that occupancy levels may not return to pre-pandemic levels for quite some time , which is why the government is providing stimulus relief . A more conservative approach is prudent at this time .
Wells Fargo By Wallace Saunders , EVP , Division Executive , Middle Market Banking , Healthcare Group
In Wells Fargo ’ s Healthcare Practice , we are fortunate to serve clients across the full value chain of the healthcare industry , from patient-facing providers through to the MedTech and BioPharma sectors . While the COVID pandemic has impacted various subsectors in different ways , the most common
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