success story of the month

Borrower: Dr. Jacqueline Fergerson ∙  Where: Cortland, NY

Bank Partner: HSBC Bank ∙  Bankers: Angelo Testani & Mark Wheeler

NYBDC Loan Officer: Jim Conroy ∙  Loan Type: SBA 7(a)
NYBDC: $300,000 ∙ Total Financing: $600,000

Cortland Eye Center has been a successful ophthalmic practice since its establishment in Cortland in 1982 by Dr. Dean Mitchell.  Cortland Eye Center offers a full range of eye care services: routine, medical and surgical eye care including an onsite optical boutique.  Dr. Mitchell and his wife, Lynn, who ran the overall administration of the business wanted to retire and enjoy some time together.

Dr. Mitchell hand-picked Dr. Jacqueline Fergerson to take over his practice.  A well respected professional, she was the Chief of Ophthalmology at the VA Medical Center in Syracuse even though she only completed her residency a year prior.

Dr. Fergerson entered into a contract to buy the business, assets and goodwill  for $750,000.  Dr. Fergerson approached HSBC Bank to finance the purchase.  As Dr. Fergerson was required to move to take over the practice, she was in the process of also buying a house and relocating to a new community. 

HSBC recognized the probability of continued success under Dr. Fergerson's ownership, however, the collateral position of the borrower was a challenge and the bank decided to work with NYBDC to obtain a 7(a) guaranty and share the risk. HSBC approached Jim Conroy, Vice President & Capital District/Southern Tier Regional Manager for NYBDC.  Mark Wheeler, Vice President & District Credit Officer said, "we had a collateral issue with a solid business and could not have done the deal without NYBDC.  We had an approval in 2-3 days.  Jim was excellent to work with, we had the whole deal closed in 30 days." 

Angelo Testani, Vice President & Business Relationship Manager for HSBC closed the deal with Jim.  He reiterated the sentiments that Mark spoke of, "we had a borrower with great experience, but not a strong enough equity position to finance the loan ourselves.  The process with NYBDC was very efficient.  We were able to finance the transition to Dr. Fergerson, keeping the business open and people employed."

Dr. Fergerson has been running a very successful practice as the new owner Cortland Eye Center.  She recalls, "I was presented with an opportunity to purchase an existing ophthalmology practice in Central New York.  Having recently completed medical school and residency, I had a lot of debt and little in the way of collateral.  HSBC and NYBDC helped me realize my dream of becoming the owner of a profitable ophthalmology practice.  Working with HSBC and NYBDC was definitely a positive experience."

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