CHFFA Bond Financing Program
Highlights
This program offers financial support specifically for health facilities in California, allowing you to invest in vital areas such as construction, renovation, and equipment acquisition. You can use the funding for land purchases, starting new facilities, or even managing existing debt. This flexibility enables you to focus on improving your services and expanding your reach while alleviating financial stress.
The loans feature market-determined interest rates and can extend for up to 40 years, making repayment manageable. With no strict cap on loan amounts, you can access the funding needed to tailor solutions to your facility's unique requirements. The initial fees are designed to be affordable, particularly for smaller health systems.
Joining this program empowers you to enhance your facility's capabilities, ultimately leading to better equipment, improved infrastructure, and a greater ability to serve your community. The ability to secure funding without overwhelming costs means you can grow your impact without sacrificing financial stability.
Financing Details
Type of Financing
This program offers loans for qualifying health facilities. The terms are flexible, with both fixed and variable interest rates determined by the market. There is no maximum loan amount, and the loan can have a maturity of up to 40 years, allowing for manageable repayment.
Eligible Expenses
Funds can be used for a variety of purposes, including:
- Construction, remodeling, and renovations
- Land acquisition
- Acquisition of existing health facilities
- Purchase of equipment and furnishings
- Refunding prior debt
- Working capital for start-up costs
- Costs related to bond issuances and feasibility studies
Restrictions and Fees
There are specific restrictions on fund usage; the funds cannot be used for unapproved operating expenses or personal use. As for fees, there is no application fee, but an initial fee of 0.05% of the issue amount applies, capped at $100,000. Additionally, a set fee of $1,000 is required for smaller health systems and public health facilities. An annual administrative fee of 0.0175% of the bonds outstanding also applies, capped at $150,000, and $500 for smaller health systems and public health facilities.
Qualifications
- Must be a health facility as defined in section 15432(d) of the California Government Code.
- Must be a non-profit 501(c)(3) corporation or a public health facility (e.g., district hospital) as defined in section 15432(e) of the California Government Code.
- Must have been in existence for at least three years, providing the same types of services.
Must demonstrate evidence of fiscal soundness and the ability to meet the terms of the proposed loan.
Disqualifications:
- For-profit entities do not qualify.
- Health facilities that do not meet the definition as specified in the California Government Code do not qualify.
Description
This program offers financial support to health facilities in California, allowing you to invest in crucial areas like construction, remodeling, and equipment acquisition. You can use the funds for land purchases, starting new facilities, or even covering existing debt. This flexibility means you can focus on what matters most: improving your services and expanding your reach.
The loans come with market-determined interest rates and can last for up to 40 years, making it easier to manage your payments over time. There’s no strict cap on the amount you can receive, providing ample room to meet your specific needs. The initial costs are minimal, with fees structured to be manageable, particularly for smaller health systems.
By participating in this program, you gain access to the resources needed to enhance your facility's capabilities. This means better equipment, improved infrastructure, and the ability to serve your community more effectively—all without the heavy financial burden that often comes with major investments.
Program Steps
Visit the Program Website
Access the program's online portal for detailed information and resources.Prepare Necessary Documentation
Gather the following documents for your application:- Proof of non-profit status (501(c)(3) certificate)
- Project proposals including plans for construction or renovation
- Financial statements from the past two years
- Current debt obligations (if applicable)
- Estimated project budget and funding needs
Complete the Application Form
Fill out the application form accurately, ensuring all information reflects your facility's needs and goals.Submit Your Application
Once your form and documents are ready, submit them through the online portal or the specified submission method.Follow Up on Your Application
Regularly check the status of your application. Reach out to program contacts if you have any questions or need clarification.Review Funding Agreement
If approved, carefully review the terms of the funding agreement, noting interest rates, loan duration, and repayment conditions.Utilize the Funds
Once the agreement is signed, you can access the funding to begin your project or enhance your facility's capabilities.
