FREQUENTLY ASKED QUESTIONS
Q. What are the terms of a loan?
A. The Loan is structured to be fully repaid over a five to seven-year time frame.
Q. What is the collateral?
A. Typically, the collateral is only your ownership interest in the ASC.
Q. What are the closing fees?
A. We charge a 2.5% Facility Fee. There are legal fees, which are paid by the borrower. The Facility Fee and legal fees are included in the loan amount, so you have no out-of-pocket cash outlays at close.
Q. What is the interest rate?
A. The interest rate is typically 6.5% to 7.5%, depending on the transaction
Q. Is the interest rate fixed or variable?
A. Borrowing rate is variable and floats based on Prime. However, we cap the interest rate at 7.5%
Q. Does my spouse have to be a co-signer?
A. Not necessarily.
Q. Is the debt reflected on my personal credit history?
A. No. We are not required to report this type of borrowing to the credit rating agencies.
Q. Can I accelerate loan payments?
A. Yes. Loans can be prepaid without any penalty fees.
Q. What is the process for making a principal payment?
A. There are two options: (i) surgery center will send your distribution checks directly to Evolve Bank & Trust and we will apply the scheduled principal and interest payments towards your loan, or (ii) open a free bank account at Evolve Bank & Trust where your distributions will be direct deposited, then we have permission to deduct your monthly or quarterly debt payments directly from the account.
Q. What happens to the balance of the distribution after the scheduled debt service has been paid?
A. If the distribution amount exceeds your scheduled debt payments: you can choose to receive the excess by check or direct deposit, or elect to apply any or all of the balance towards your outstanding loan amount. If the distribution does not cover that period’s debt payment: you may be required to make up the difference depending on the status/history of your loan.
Q. What type of notification do I receive?
A. We will send you a statement showing how the funds were applied after each distribution check has been received and processed. This is either on a monthly or quarterly basis depending on when the center makes the distributions.
Q. Am I fully liable for the debt?
A. Yes. Evolve Bank & Trust makes the loan to you.
Q. Once the loan is paid in full what occurs?
A. We notify the ASC upon the loan being repaid, as well as, providing you with documentation evidencing that the pledge of your ownership interest in the ASC has been released.
Who should I contact?
A. Please address inquiries and/or business opportunities to the following contacts: