Health Care Staffing Agency - Lender's Perspective

March 24, 2026

by a searcher from New York University - Leonard N. Stern School of Business in New York, NY, USA

I'm looking to acquire a non-medical home care agency and want to better understand the lending landscape for this type of deal. I know some lenders avoid healthcare staffing acquisitions. I'd like to understand the specific reasons for that, and whether you've done deals in this space before.

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Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - nice to meet you. Non-medical home care is absolutely financeable through SBA 7(a). We've closed multiple deals in this space. But you're right that some lenders pass on it. Here are the three biggest reasons why. Worker classification. This is the #1 lender concern. If the agency uses 1099 contractors instead of W-2 employees, lenders see a ticking time bomb. The DOL and IRS have been actively cracking down on misclassification in home care, and one audit can trigger back taxes, penalties, and wage claims that wipe out the business's profitability overnight. Most lenders want to see W-2 caregivers with clean payroll tax compliance before they'll touch the deal. Revenue source. If the agency is Medicaid-dependent, lenders get nervous. Rates are set by the state, collections take 30-90+ days, and one policy change can cut revenue. A private-pay model is the gold standard. No reimbursement delays, no payor concentration, cash comes in when services go out. License transfer. Most states require a home care license, and when ownership changes, a Change of Ownership filing is required. If the license can't transfer cleanly at closing, or there's a gap in operating authority, lenders see that as execution risk. Confirm the transfer process in your state early so you can address it upfront in the loan package. We have a lot experience financing non-medical home care agencies companies via the SBA. If you ever need help reviewing a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by a searcher
from University of Wisconsin in United States

Hi Bradley, I've looked at numerous staffing agency acquisitions recently, including in healthcare. I'm happy to exchange notes and provide a recommendation to my loan broker who has helped me evaluate the potential acquisitions that I've contemplated and placed offers on. Feel free to shoot me a DM.

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