Capitol Surgery Center Goes Modern with Medical Financing

An orthopedic surgeon, an ENT, and a pain management specialist walked into a bank…

How Live Oak Bank made it possible for them to relocate their ambulatory surgery center, upgrade to a state-of-the-art facility, double its capacity, AND put $350K back into their pockets.

When the three owners of Capitol Surgery Center, an aging facility in Salem, Oregon, decided that they needed a larger, more modern surgery center and a shorter commute, management consultant Rob McCarville approached Live Oak Bank for financing. McCarville, Principal of Medical Consulting Group, LLC, had experienced firsthand the advantages of working with a niche lender that understands the ASC business. He looked forward to working once more with Jon Voeller, a senior loan officer with Live Oak Bank’s Healthcare division.

Capitol would need approximately $3.5 million—$2.5 million for construction and at least $1 million for equipment and loan payoff—to make their plans a reality. They had already invested $350K in purchasing a new location in Albany, Oregon, and were ready to make improvements to the building’s shell.

McCarville credits Live Oak’s state-of-the-art online Portal with making it possible to upload documents and easily visualize the progress of the process.

“Live Oak’s streamlined communication and real-time updates made it possible to move from proposal to commitment letter in only two weeks, and from the commitment to closing in another 45 days or so,” McCarville recalls. “For a complex project of this type, that’s remarkably fast. Jumping through all of the hoops required by non-specialized lenders would have added months of frustration to that timeline because they don’t understand this business sector and often waste time by trying to make a square peg fit into a round hole. It helps that Live Oak’s teamwork structure makes it easier to keep the process moving—there’s no danger of getting trapped in an organizational ‘silo’ where communication tends to break down.”

“That doesn’t mean that there were no bumps or potholes along the way, but it’s what happens when you hit them that matters. Jon and his team stepped in to prevent them from becoming road blocks and sinkholes by waiving requirements that weren’t relevant to Capitol’s situation and ability to repay the loan.”

McCarville credits Live Oak Bank closing agent Kathleen Klima and her exceptional organizational skills with keeping the process on track as it approached the finish line. “She and the title agents working behind the scenes made it possible to close without undue delay, and that makes a big difference when the borrowers are anxious to complete the project and move into their new facility. The terms of the loan also put the $350K they had already invested in the project back into their pockets.”

After closing, a Live Oak construction manager efficiently handled payments to contractors and equipment vendors. “Live Oak was able to amortize those equipment purchases over a 25-year period,” says McCarville. “Conventional equipment loans are typically for only 5 to 7 years, and the much longer term will result in considerable savings in cash flow over the years. If needed, Live Oak structures packages that include both SBA and conventional loans. This type of flexibility is what I’ve come to expect from Live Oak Bank’s team. It’s their specialty.”

“It’s been a gratifying experience for these physician owners,” he adds. “They were able to upgrade to a state-of-the-art facility, they doubled their capacity to two ORs, and the loan process was smooth, efficient, and responsive to the unique needs of their enterprise. They receive one monthly statement that encompasses every element of their loan package and write just one check. I’m happy, too, because I know how much these advantageous financing terms will contribute to their ASC’s bottom line for years to come, and because they are in an excellent position to take advantage of cost-segregation tax savings in the future. Having the right lender on your team can make all the difference in how your story plays out.”

Dental Exclusive: How Dr. Mark Lassiter Accomplished the American Dream

I am a post-baby boomer kid from the big city of Atlanta, Georgia, who grew up believing in the American Dream (and still do). My Dad was an IBM Golden Circle salesperson in the 1960’s and a graduate of Georgia Tech in Engineering. I always felt proud of his accomplishments and the need to carry on his legacy of education and success. I knew I wanted to impact other people’s lives to make them better. Even though I “hated” business academics, my Dad’s inspiration still drove me and gave me incredible nurturing for my professional goals.

My search for the “thing” I would do led me to UNC-Chapel Hill School of Dentistry. Today, I realize that the business academics that I “hated” now gives me the untethered ability to help thousands of patients by bringing value and improving their lives. My vision has been to create a world-class experience for the patients of all my offices. To do this, I need professional partners who can and will support this important endeavor. One of these partners is Live Oak Bank, who has been there for me from the start.

Live Oak assisted me through the process of applications with the SBA and with determining my capital needs. The financing process was painless, and Live Oak facilitated every facet of the process to reduce my stress and allow me to focus on the critical skills of management and dentistry. From the outset, my account managers at Live Oak have stayed involved and legitimately engaged in my ongoing success. While there are challenges that occur when a business is in a high-growth mode, the officers at Live Oak understand this and are supportive. They provide me with immediate response, advice, and thoughtful concern.

As a CEO, I know that I need partners engaged in understanding my processes and vision AND who are strategic to their approach using solid information and bringing their expertise into my realm. I have been extremely satisfied with all that Live Oak has done, and I am excited to work with them as I expand to reach a larger patient base.

Mark D. Lassiter, DDS

Free Funeral Home Acquisition Webinar: Your Opportunity for Growth

Presented by Tim Bridgers and Jim Breaux

For independent funeral home owners looking to expand, acquiring an additional funeral home is an achievable way to grow. In the past, seller financing was the primary funding option, making the transition of independently owned firms difficult.

In this webinar, we looked at the current landscape of the industry and what it takes to acquire a funeral home. Early planning is a must. Learn the steps to take and the financing options available.

Questions about your acquisition or financing? Contact our team today.

Mark Milton – 910.202.6934
Tim Bridgers – 910.685.7446
Jim Breaux – 910.758.2266

Thank you Kates-Boylston for hosting this webinar.

Free Webinar: The Facts About SBA Financing for Self-Storage

Self-Storage Webinar Alert

Join Live Oak Bank‘s Terry Campbell as he explains facts about SBA Financing for the Self-Storage Industry.

Specializing in the Self-Storage space allows Live Oak to offer unique insight into the details of SBA lending for the industry. What are the features of the 7(a) program? What characteristics do we seek in our borrowers?

The Facts about SBA Financing for Self-Storage 
Presented by: Terry Campbell, Live Oak Bank
Date: December 16th at 2 PM EST

Come with your questions for the Q&A session at the end of the presentation!Register today!
Space is limited.Questions about financing? Contact Terry Campbell 
Email | 910.202.6933



Terry Campbell joined the Live Oak Bank Self-Storage Lending Team in 2015 with over 20 years of experience in the industry. Terry previously held various roles with a leading Self-Storage supplier. Starting as a drafter/estimator, he advanced to Vice President of Sales and Marketing and Executive Vice President of Operations. Terry has also served on the Editorial Advisory Board for the ISS Magazine and the Board of the North Carolina Self-Storage Association since its formation. He is a frequent presenter at industry events and trade shows as well as a writer for industry publications.

Click here to register.

How to Ensure a Successful Hotel Construction Project

Before any successful commercial hotel construction project begins, an “A Team” should be assembled: lender, architect, and contractor. The team works together with the owner to ensure a successful project and supports the owner in decision-making. Some critical elements of all construction financings include sufficient capitalization and budget, timelines of the build-out, and the quality and strength of the contractor and architect.

When the lender “builds” the project, a number of questions must be answered. Is the contract inclusive? An experienced lender checks contingency, permits, scope of work. What is and is not included as part of the project? Landscaping, security systems and phone generally are not included in the contract. Is the property properly zoned or does it need to be subdivided? What are the timelines on zoning and permits? What fees must be paid?

Many municipalities require money up front to review drawings, go through the planning process and issue permits. What is the deadline for closing on the land or building? Many times, a lender will provide a “bridge” loan to carry the project until the permit is issued. How many months will construction take? An experienced lender will add additional months into the financing to cover any delays.

Who will be monitoring the construction process? Will qualified inspectors look at the project while it is under construction? It is in the best interest of the owner to have qualified inspectors review the work as it is completed.


In addition, inspections allow for a timely payment schedule to the contractor. How much retainage will be held? Retainage is a percentage of the contract that is held back by the lender on each “draw,” or request for payment. Retainage protects both the owner and the lender from liability as well as ensuring punch-list completion. Once all of the final punch-list items have been completed to the owner’s satisfaction, the retainage is paid to the general contractor.

How is the contractor paid? How does one ensure against mechanics’ liens? Mechanics liens are filed by the subcontractor or general contractor against the project collateral. A qualified lender will have a set payment procedure in place to ensure the contract is met and the contractor is paid in a timely manner. Generally, a contractor will be paid once an unconditional lien release is received by the bank. This ensures that a mechanic’s lien is not filed because the contractor is acknowledging that he is being paid the amount due at the time and agrees not to file a lien.

If a mechanic’s lien is filed, a lender cannot disburse any additional funds until it is cleared. This can cause significant delays to the project. Does the bank require a bond or another type of performance guaranty? If so, there are costs to the owner on these options that need to be included in the project. How does the bank approve a contractor? Lenders who specialize in construction will want to see a statement of the contractor’s qualifications, references and financials for approval of the contractor.

It is essential that a contractor and architect have hotel experience. Without it, the building will be completed to code and general commercial specifications but might not be the building the owner is 100 percent happy with; issues such as flooring, HVAC and insufficient plumbing and electrical can cause cost overruns or a miscommunication between the parties.

Finally, what type of loan will best fit the owner’s needs? Before determining loan type, the lender will need to know what type of hotel is being constructed. A conventional loan is usually the first type of loan requested by an owner. Conventional loans are completely driven by loan to value (LTV) requirements. Conventional loans on hotel projects are generally granted up to 75 percent LTV. This means that if a property appraises for $10 MM, the maximum the bank can lend is $7.5MM. The owner would essentially be required to have a down payment of 25 percent plus all additional soft costs.

If the appraisal came in lower than the $750,000, the owner would be required to put additional money down to make up the difference. Conventional loans for a construction project are allowed a maximum LTV and may or may not include an interest reserve to pay loan payments during the construction period.

Fees also may not be included as part of the project. These loans may or may not be fully amortizing and contain a call feature as part of the permanent financing. When possible, a permanent loan should be in place before starting a construction project.


The SBA 504 loan program will allow the lender to include all costs of construction. The 504 program will allow up to a 90 percent advance rate on multi-use properties and an 85 percent advance on special-use properties. This program is for “hard” assets only and will not include working capital, inventory or short term equipment. The appraisal requirement on the 504 program is for the building-to-value with all costs included except equipment. If the appraisal were to come in low, the same rules apply as to conventional loans in that the difference of the cost versus appraisal will be covered by the owner.

The 7a loan program will cover all of the costs of construction but will also allow other uses to be part of the request, such as working capital and inventory. These loans automatically convert to permanent, are fully amortizing and do not have call features. The 7a loan program also has no minimum equity requirement for an existing practice. The 7a loan is not a loan-to-value-driven program and there is no maximum LTV.

The key to a successful construction loan is to ensure that qualified people are on the team. Although the owner may receive cheaper bids, using professionals who specialize in hotel construction will end up costing less and ensure that the project is completed on budget and on time.

Adiós Prohibition! It’s Time to Expand Your Distillery

The recently passed California Craft Distillers Act of 2015 signals a welcomed end to prohibition era laws and ushers in the same modern growth privileges that wineries and breweries have enjoyed for years. Effective January 1, 2016, the California law gives distilleries the ability to host private tastings and events, directly sell up to three bottles of spirits per consumer per day, and own up to three restaurants.

Similar law changes have sparked substantial distillery growth in states like Washington and North Carolina. This significant and historic shift in regulations will create tremendous expansion opportunities for the California craft distillery industry.

Live Oak Bank offers comprehensive financing to help distillery businesses nationwide expand and reach their full potential. Whether it’s acquiring another distillery, building a new facility, purchasing equipment, or simply attaining working capital, our expert lending team is positioned to meet each distillery’s unique lending needs.

With years of experience in the craft beverage world, we can make sure your growth aspirations are realized. To learn more, please contact a member of our Senior Lending Team located in Santa Rosa, CA, or visit our Wine and Craft Beverage page at

Big Splash in the Sonoma County Beer Industry

The guys at HenHouse Brewing in Petaluma, CA, recently finalized plans to move their brewery operations to Santa Rosa, expand their facility, and add a new taproom all thanks to unique financing obtained from Live Oak Bank. The Small Business Administration (SBA) loan of more than $1 million will allow HenHouse to adequately advance its aspirations as a local brewery business.

Senior Loan Officers Tracy Sheppard and Randall Behrens with the bank’s Wine and Craft Beverage division in Santa Rosa, CA, worked with HenHouse on this financing deal that will also increase its annual production by 3,000 barrels per year. Live Oak Bank’s lending model allows a brewery like HenHouse to capitalize on its cash flow equity while offering longer loan terms and low interest rates.

Read more here. You may also visit our Wine and Craft Beverage page at

Dr. Leary Achieves Her Dental Practice Dreams

Customer Spotlight: Dr.Leary

“My desire to become a dentist began in high school, and this desire grew while learning more about dentistry throughout college. I received my BS in Biology from Spelman College and my DDS from The University of North Carolina at Chapel Hill. After graduating from UNC-CH, I completed a one-year general practice residency (GPR) at the Veteran’s Affairs Hospital in Baltimore, MD.

As my career in dentistry began, I was fortunate to work in a pediatric dentistry, corporate dentistry, private practice and finally, to own a practice. In February 2011, I acquired the healthy practice of a retiring dentist who had been in the same location in the community for 41 years and had a great list of generational patients. I am proud to say that my practice remains a true family practice. After a year in my new practice, it was clear that my new acquisition offered immense opportunity. I knew we needed to transition from our three operatory, 1000 square foot practice to a larger and more modern facility to accommodate our growth.

With the knowledge and extraordinary team at Live Oak, my two-year journey ended with the purchase of a 7500 square foot pad and my own 4000 square foot building. A year later, I am happy to say we have continued to grow. Live Oak is still a wonderful support system for my practice, and I am fortunate to have them on my team, a team in which failure is not an option!” – Dr. Leary

Yoga for Dentists

Yoga for Dentists by Dr. David Hennington, DDS via

Dental professionals face unique physical, mental, and emotional challenges each day. These challenges can create discord and imbalance, especially when they’re combined. Contorting our bodies in order to gain better visibility, sitting for long periods, and even hunching over our computer keyboards can put enormous strain on our musculoskeletal systems. Dealing with fearful patients, uncooperative team members, and the frustrations of running a small business can sometimes become overwhelming and lead to powerful feelings of anxiety, anger, and even depression. Numerous coping strategies are available. One ancient remedy is my favorite and can help alleviate the detrimental effects of these varied stressors. That remedy is the practice of yoga.

Derived from a Sanskrit word meaning to “yoke together, unite, or integrate,” yoga is based on an Indian body of knowledge at least 2,000 to 3,000 years old. As yoga continues to evolve and become increasingly diverse, it has become difficult to find a single, common definition that can be agreed upon by all practitioners. For the purpose of this article, yoga can be defined as the process of harmonizing the body, mind, and breath through the coordination of various physical postures (asanas) with specific breathing and meditation techniques.

It is this synchronization of the breath with the movement of the body that is the basis for many of yoga’s benefits. Breathing in rhythm with the poses is what separates yoga from other physical disciplines. Without coordinated breathing, one is merely stretching. With the breath, one is doing yoga. While a variety of breathing techniques (pranayama) can be used to accomplish specific effects, the one most commonly used is a deep, smooth inhale with an exhale of equal length. For instance, take a deep breath for a count of four seconds. Now exhale for four seconds. Get into a rhythm with that. When you start to feel yourself relaxing, expand the inhale to five seconds, and the exhale to five seconds. Next, try six seconds.

Deep breathing has many physical and mental benefits. These include detoxifying the body, releasing muscle tension, improving focus and an awareness of the present moment, facilitating a feeling of calm, and strengthening the lungs, heart, and immune system. It’s very simple, and very effective.

Physical benefits
As a regular yoga practitioner for more than 15 years, I have experienced firsthand yoga’s many physical benefits. Yoga can be used therapeutically to alleviate existing ailments and can also be employed preventatively. Modern medical research continues to verify the validity of yoga as therapy to improve overall health. Given the wear and tear our bodies experience over time as we practice dentistry, yoga is especially beneficial for the dental professional.

One of the obvious benefits of yoga is improved flexibility, but the postures also build muscle strength. That additional muscle strength, particularly of the critical core musculature, is balanced by the increased flexibility to help improve posture, both when sitting and when moving through space. This, in turn, reduces strain on the back, neck, shoulders, and other muscles and joints, which decreases the practitioner’s chance of developing future degenerative musculoskeletal conditions.

Yoga improves blood flow by increasing your heart rate and delivering more oxygen to your cells, which then function better. While some styles of yoga can get you into an aerobic target range, studies have shown that even those that don’t can improve your cardiovascular conditioning.

Other studies have shown yoga’s positive impact on a wide variety of physiologic functions, including strengthening bones and reducing osteoporosis, lowering blood sugar levels in diabetics, decreasing blood pressure, boosting the functionality of the immune and adrenal systems, and improving sleep. In addition, because yoga is a low-impact practice, it’s gentle on joints that may be weak or compromised. In short, yoga offers a way to counteract or avoid many of the chronic physical conditions that are commonly seen in dental team members.

Continue reading here.