# MCA for assisted living facilities (detailed) > Assisted living facilities qualify for MCA funding against private-pay and long-term-care insurance revenue, typically $50K–$1M at 1.22–1.32 factor — occupancy volatility drives underwriting. Assisted living facilities (ALFs) provide non-skilled residential care for seniors, billed almost entirely private-pay (Medicare and Medicaid do not cover assisted living beyond limited Medicaid waiver programs in some states). Revenue is predictable on a per-resident basis but vulnerable to occupancy swings. Memory care and continuum-of-care campuses have different economics. **Typical funding ranges.** - Small ALF (20–40 beds, $100K–$300K monthly revenue): $50K–$200K advances at 1.25–1.32 factor over 12–16 months. - Mid-sized ALF (40–80 beds, $300K–$700K monthly revenue): $200K–$500K advances at 1.22–1.30 factor over 14–18 months. - Multi-facility or CCRC (continuing care retirement community) ($700K+ monthly revenue): $500K–$1.5M advances at 1.20–1.28 factor over 16–20 months. **What underwriters look for.** First, the occupancy rate. ALFs need 85–90% occupancy to be financially healthy. Below 80% is concerning; below 75% is critical. Funders pull census reports and trailing 12-month occupancy. Second, the resident-mix and care-level distribution. Higher acuity (memory care, complex medical) commands higher per-day rates ($200–$400/day) than standard assisted living ($100–$200/day). Third, the payer mix. Private-pay (out-of-pocket) is fastest. Long-term-care insurance (Genworth, John Hancock) reimburses but with policy caps. Medicaid waiver (state-specific) is slow and below-market rate. Fourth, the regulatory and survey history. State surveys (often annual) can result in license actions; funders pull recent survey results. **Common uses.** - Working capital during occupancy-recovery periods. - Marketing (ALF CAC is $1,500–$5,000 per new resident move-in). - Renovation or memory-care unit build-out. - Hire additional caregivers, med-tech, or LPNs. - Bridge cash flow during state Medicaid reimbursement delays. **What to watch out for.** Occupancy volatility is the ALF-specific landmine. Resident turnover from death, hospitalization, or move-out (often to skilled nursing) can drop occupancy 5–15% in a single month. ALFs that lost 10+ residents in 2020 COVID and never fully recovered are still struggling. Long-term-care insurance reimbursement is slow and often disputed (policy interpretation, elimination periods, daily-benefit caps). Heavy LTCi-billing ALFs need to model claim-processing lag. Stacking is dangerous because revenue is tied to physical capacity (number of beds); you cannot scale beyond occupancy. **State considerations.** Florida, California, Texas, Pennsylvania, and New York have the largest ALF populations. Florida and Arizona have the highest concentration of independent ALFs. California's RCFE (Residential Care Facilities for the Elderly) regulations are strict; Florida ALF Type 1/2/3/4 licensing creates care-level distinctions that affect revenue. **APR-equivalent reality check.** A 1.28 factor over a 14-month term is roughly 42–48% APR. Compare to senior-housing-specialty banks (Live Oak Bank, Cambridge Realty Capital, Lument), HUD 232 loans (4–6% APR for ALF), or SBA 7(a). MCA only makes sense for short-term working-capital needs. **Common confusions.** First, "ALFs are too capital-intensive for MCA." Partly true — real estate and build-out are bank/HUD financed; MCA fills working-capital gaps. Second, "Medicaid waiver revenue stabilizes ALF cash flow." Loosely true — but Medicaid waiver pays below market and reimburses slowly. Third, "Memory care is recession-proof." Partly true — demand is non-discretionary but operating costs are higher (staffing ratios 1:5 vs 1:10 for standard AL). Fourth, "ALF MCA requires state license review." Yes — funders pull state licensure and recent survey results. Fifth, "CCRC entry-fee revenue can be MCA-collateralized." False — entry fees are refundable resident deposits, not free cash flow. As of 2026-06-29, Fundnode routes ALF merchants first to senior-housing-specialty banks (Live Oak Bank Senior Housing, Cambridge Realty Capital, Lument) or HUD 232 for permanent capital. MCA is appropriate for short-term working-capital gaps only. ## Related terms - [MCA for home health agencies (detailed)](https://fundnode.co/llms/glossary/mca-home-health-agency-funding-detailed) — Home health agencies qualify for MCA funding against Medicare and Medicaid revenue, typically $50K–$500K at 1.25–1.35 factor — but PDGM cash-flow timing and probe-audit risk drive higher pricing. - [MCA for hospice agencies (detailed)](https://fundnode.co/llms/glossary/mca-hospice-agency-funding-detailed) — Hospice agencies qualify for MCA funding against Medicare hospice per-diem revenue, typically $50K–$400K at 1.25–1.34 factor — the cap-liability rule and length-of-stay audits drive underwriting. - [Merchant cash advance (MCA)](https://fundnode.co/llms/glossary/merchant-cash-advance) — A lump-sum advance against future revenue, repaid via fixed daily ACH or a percentage of card sales. Legally a sale of future receivables, not a loan. - [Factor rate](https://fundnode.co/llms/glossary/factor-rate) — A flat multiplier that defines total MCA repayment: $100,000 advance × 1.30 factor = $130,000 repaid. It is not an interest rate; it does not compound. ## Authoritative sources - [Argentum — Senior Living Association](https://www.argentum.org/) - [HUD — Section 232 Mortgage Insurance for Residential Care Facilities](https://www.hud.gov/program_offices/housing/mfh/progdesc/232) --- Source: https://fundnode.co/glossary/mca-assisted-living-facility-funding-detailed (HTML version) Document: MCA for assisted living facilities (detailed) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.