Sims Secures a Bank Line of Credit for Los Barrios Unidos Community Clinic
“Jimmy Rester and Ryan Snow from HJ Sims were introduced to Los Barrios Unidos Community Clinic (LBU) at a time when we began to explore line of credit and loan options for the clinic. Jimmy and Sims earned our trust in short order, and we engaged them to secure financing which fit our needs. The journey to match LBU with banks was fraught with complexities, yet Jimmy went above and beyond in smoothing the way for us. I have deep respect and admiration for Jimmy Rester and Ryan Snow. They demonstrated a solid understanding of our clinic, our mission, and our financing needs. I highly recommend Jimmy Rester and HJ Sims!”
–Leonor Marquez , Chief Executive Officer, Los Barrios Unidos Community Clinic
Partnered Right®
Founded in 1971, Los Barrios Unidos Community Clinic (“LBU”) is a non-profit Federal Qualified Health Center (“FQHC”) serving a predominantly Hispanic and uninsured population in South Dallas. LBU is headed by Leonor Marquez, a strong leader with more than 30 years in community health care, and who has been at the helm LBU for over 20 years. LBU provides primary care services including pediatrics, prenatal care, adult care, mental health care, dental care for children, behavioral health care, WIC services, and other supportive services. They have seven different clinics, drawing patients from all parts of Dallas County. LBU provides over 90,000 patient visits per year and employs over 200 people.
Sims was engaged to assist LBU in securing financing to assist in funding the occasional operational shortfall and other cyclical operational needs of LBU. This financing would address issues that Los Barrios Unidos Community Clinic has faced that were primarily brought on by the pandemic.
Structured Right®
The extraordinary nature of COVID-19 presented LBU, and many other FQHC’s, with operational and financial challenges. LBU has historically maintained a strong financial position, exemplified by the absence of any long-term debt on their balance sheet. The historically strong financial standing of LBU attracted considerable interest from financial institutions, resulting in LBU receiving six term sheets.
Executed Right®
As collateral for the line of credit, Los Barrios Unidos Community Clinic pledged one the properties that they owned. The pledged property had a lien for a grant from the Health Resources and Services Administration (“HRSA”). LBU and Sims worked with HRSA to subordinate their lien so that the bank could have a first mortgage on the property.
Financed Right®
In June of 2024, Sims successfully secured a $4 million line of credit from a Texas based bank to finance the working capital needs and general corporate purpose needs of Los Barrios Unidos Community Clinic. The financing gave LBU the ability to draw down funds over two years, paying only interest, and then term out the remaining principal amount for an additional four years on a 20-year amortization schedule.
For more information, please contact:
James Rester
901.652.7378