GSBDC Finances New Physical Therapy Facility

Posted 04.12.10

Loan: SBA 504

Morgan Physical Therapy, PLLC (MPT) was established in 2003 when Gary Morgan, a licensed physical therapist purchased an existing physical therapy practice in Cicero, NY.  At that time he began leasing the building at 5711 South Bay Road, Cicero, NY from the former owner of the practice.  In 2007, property was purchased at 5740 South Bay Road to be the future home of the practice.  Within a 1/2 mile from the existing location, it promised minimal disruption for clients and staff.

Substantial demolition and renovation was required to maximize space requirements for the optimal workflow Morgan desired.  Additional treatment rooms and a modern gym facility were constructed to accommodate the growing client base.  According to Gary Morgan, Physical Therapist, “Partnering with M&T Bank and the GSBDC has allowed me to fulfill my dream of creating a facility that meets not only my current needs, but those of my patients well into the future.  The new building has attracted a lot of attention, and the visibility and beauty of the structure has increased the number of calls from patients and physicians wanting to set up appointments and learn more about our practice.”

GSBDC provided a $138,000 SBA 504 loan to assist with the construction costs.  The program gave Morgan the benefit of a 20 year fixed rate second mortgage on 40% of the total project cost while minimizing the equity injection required of the practice.  A special provision permitted the existing equity in the previously purchased property to meet this requirement.

M&T Bank provided 50% of the project financing in a first mortgage position.  According to Suzanne Fadden, Vice President, “We’ve seen Morgan Physical Therapy’s continued growth since our initial involvement with Mr. Morgan’s purchase of the practice, while being limited by space and structural constraints.  Partnering with GSBDC provided a great opportunity for Mr. Morgan to secure a more suitable facility to meet the needs of his patients.”

Morgan Physical Therapy has already added one staff position since project completion, bringing the total to four employees.  Morgan anticipates he will require three additional employees over the next three years to accommodate further growth.