It was the ancient Greeks who first discovered that change is constant. We may not see the change happening, but change is occurring nonetheless.
Tom Green, CEO
Philosophers, politicians and poets have commented on it through the ages, but science fiction author Isaac Asimov said it best, “No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.”
Nothing illustrates change better for business than the capital markets. The future of finance, especially access to capital for the sectors we serve, is being reshaped daily. Keeping you informed of the latest changes in financing is something we take very seriously—whether it’s in our newsletter, through emails, on our website or in person.
This edition of The Capital Issue highlights recent changes affecting hospitals, senior living providers, housing developers and nonprofit organizations. Its articles cover the current interest rate environment and global economic recovery, important modifications to HUD and USDA programs as well as the growing trend of sustainable and responsible investing.
Please don’t hesitate to contact our authors if you have any questions about their articles. In addition, our bankers would be happy to talk with your organization about its strategic position in this complex, changing environment and what its best options are to access capital going forward.
The beginning of 2013 ushered in the fifth year of near-zero, short-term interest rates.
But why have the rates been so low for so long?
The original release of the Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Sec. 242/223(f) refinance program was thought of by participants in the hospital finance industry as a compelling alternative to the traditional tax-exempt bond markets. At the time, the tax-exempt bond markets were challenged by the lingering effects of the financial crisis, including widening credit spreads on fixed-rate offerings, the fallout from bank downgrades impairing letter of credit enhancement and a general tightness of credit within the banking community.
The U.S. Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) Sec. 232 program, better known as HUD LEAN, recently adopted significant changes to its loan closing process. In a previous article, we examined the new borrower and operator agreements as well as loan monitoring changes. Now let’s take a closer look at new accounts receivable (AR) financing documents.
The distinction between an urban community and a rural one seems simple. Urban communities are cities with large populations; everything else is rural. That simplicity, however, quickly vanishes as one begins to examine just what encompasses everything else.
Sustainable and responsible investing, or as it is often called, socially responsible investing (SRI), has grown as more investors desire to have their investment dollars channeled towards investments that reflect their own personal or organizational values. In the case of nonprofit organizations, mission-related investments have become increasingly important in the last 10 years.