When the Great Recession struck in 2007, the senior-care sector was a calm in the storm. As the recession hit the real estate market, the healthcare sector actually experienced growth.
It was in the years following the recession that the healthcare industry felt the impact and many lenders stepped away. At CIBC, we stood by our clients, recognizing that a relationship is a commitment in good times and challenging times.
Today, the senior-care sector is in the direct path of the storm. Many operators were unprepared for the pandemic, both in caring for their residents and employees and ensuring they had the financial strength to support the onslaught of unexpected expenses and a sudden plummet in demand.
“The industry was doing very well before the pandemic,” said Ann O’Shaughnessy, Managing Director and Group Head in CIBC’s US Healthcare Banking Group. “Suddenly, at the start of the pandemic, many new admissions for seniors’ housing stopped due to individual state mandates and self-imposed restrictions to protect residents and employees. At the same time, there were tremendous unplanned expenses.”
Government programs helped bridge the gap. CIBC participated in the Paycheck Protection Program, securing access to financing through this program for every client who sought our help. We could do this because of the relationships we build with our clients. Our ability to walk them through the process and guide them every step of the way cut down on errors and resulted in quicker access to the loan proceeds.
“It is during these times that having a consistent partner dedicated to understanding the industry becomes so much more important,” said Bluma Broner, Managing Director and Group Head in CIBC’s US Healthcare Banking Group. “Many of our clients really understood this during the Great Recession and appreciate it even more today. Many of the prospective clients we talk to are coming to that understanding now.”
Our team has decades of experience in serving clients in the assisted-living, skilled-nursing, memory-care and independent-living operator segments. We attend the same conferences, like NIC; read the same industry publications; and watch the same industry trends. This deep knowledge gives us the confidence to work with our clients and tailor solutions aligned with their unique ambitions.
“When there is so much uncertainty in the marketplace, to have a bank that stands by what they say brings incredible relief to our clients,” O’Shaughnessy said. “When you are worried about the challenges facing your company, we make sure you don’t have to worry whether your bank is going to be your partner and walk the path with you.”
Broner added, “Our approach has remained consistent in that we are devoted to this industry and to working with our clients and prospective clients through this uncertain period.”
To learn more about how CIBC can partner with your business, visit Healthcare Banking.
