This program is a fantastic opportunity for your non-profit health facility. You can access up to $1.5 million in funding, which can be used for a variety of purposes like buying or renovating property, acquiring equipment, or refinancing existing debt. With a low interest rate of 3% for new projects, this funding option is not only affordable but designed to grow your services and enhance patient care in your community.

Applying is straightforward. You only need to contribute 5% toward project costs, making it an accessible option for your budget. Plus, loan terms range from 5 to 20 years, depending on how you plan to use the funds. This flexibility allows you to choose a repayment schedule that best fits your financial situation while investing in improvements that will directly benefit your facility.

Being approved unlocks the potential to expand your offerings, modernize your equipment, and ultimately provide better care for your patients. With this support, you can strengthen your facility's impact in the community while ensuring you remain a vital resource for those in need.

Type of Financing
This program offers a loan specifically designed for health facilities.

Loan Terms

• Minimum loan amount: $25,000
• Maximum loan amount: $1.5 million (capped at $1 million for refinancing existing debt)
• Interest rate: 3% (4% for refinancing existing debt)
• Loan maturity varies based on use:
  
  • 5 years for equipment and furnishings
  • 15 years for refinancing existing debt
  • 20 years for purchase, construction, and renovation of real property
• Borrowers must contribute a minimum of 5% toward project costs
• A gross revenue pledge and lien on equipment or property are required.

Eligible Expenses
Funds may be used for:

• Purchase, construction, or renovation of real property
• Purchase of equipment and furnishings
• Feasibility studies, site tests, and surveys
• Permit fees, architectural fees, and pre-construction costs
• Refinancing existing debt

Restrictions
Funds cannot be used for expenses outside of those listed above.

Fees

• $50 non-refundable application fee
• 1.25% initial fee of the loan amount payable at closing
• No ongoing program fees.

• Must be a health facility as defined in the Authority's Act (Section 15432(d) of the California Government Code).
• Must be a non-profit 501(c)(3) corporation.
• Must qualify as a small or rural health facility or public health facility (e.g., district hospital) as defined in the Authority's Act (Section 15432(e) of the California Government Code).
• Small facilities must have annual gross revenues of $30 million or less (no revenue limit for rural facilities or district hospitals).
• Must be licensed by the State of California, typically through the Department of Health Care Services, Public Health, or Social Services.
• 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.
• Facility must be certified, organized, maintained, and operated for the diagnosis, care, prevention, and treatment of human illness, or physical, mental, or developmental disability, including convalescence and rehabilitation and including care during and after pregnancy.

Disqualifications:

• For-profit businesses do not qualify.
• Businesses that do not meet the specific health facility definition are disqualified.
• Any corporation that is not a non-profit 501(c)(3) is disqualified.
• Businesses without the required State licensing are disqualified.
• If the business has been in existence for less than three years, it will not qualify.

You can access funding of up to $1.5 million for your non-profit health facility. This money is flexible and can be used for various purposes such as buying or renovating property, acquiring equipment, and even refinancing existing debt. With an interest rate of just 3% for new projects and 4% for refinancing, it’s an attractive option for your business's growth.

The loan terms are designed to accommodate your needs. You can repay the loan over a period between 5 to 20 years, depending on how you use the funds. For example, equipment loans have a shorter repayment period, while property purchases allow you the longest time to pay back. Additionally, you only need to contribute 5% toward the project costs, making this a more manageable option for your budget.

This program is not just about money; it helps support the expansion and improvement of healthcare services in your community. By taking advantage of this opportunity, you can enhance your facility's offerings and ensure better care for those you serve.