There are fears that if the local authorities cannot pay larger fees or if the government does not help the sector find capital, the credit crunch may force the closure of care homes.Large care providers such as Four Seasons and Southern Cross as well as small care home companies that have taken out loans against future earnings are likely to be affected.Southern Cross Healthcare, one of the biggest care home operators in the UK with 735 homes and 37,425 beds for elderly and disabled people, agreed an extension of its loan facilities to give the company time to sell off freehold property assets in order to refinance its remaining debt, which has been estimated as being £80m.