Healthcare Expansion Loan Program II (HELP II)

Who can apply

IndividualNonprofit

Must be licensed by the State of California, typically through the DHCS, CDPH, or CDSS; demonstrate evidence of fiscal soundness/ability to meet the terms of the proposed loan; and 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 during care during and after pregnancy.

Where: None.

Purpose

This program will provide low-interest rate loans to California's non-profit small or rural health facilities in an efficient, timely, and cost-effective manner.

Description

Eligibility -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 and 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 discal 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 during care during and after pregnancy Use of Funds Funds may be used for: -Purchase, construction, renovation, or remodeling of real property -Purchase equipment and furnishings -Perform feasibility studies, site tests, and surveys associated with real property -Pay permit fees, architectural fees, and pre-construction costs -Refinancing existing debt Loan Terms -Minimum loan amount of $25,000 -Maximum loan amount of $1.5 million ($1 million for refinancing existing debt) -Interest rate of 3% (4% for refinancing existing debt) -Maximum loan maturity depends on use of funds.  Between 5 years for equipment and furnishings and 20 years for the purchase, construction and renovation of real property (15 years for refinancing existing debt) -Gross revenue pledge, as well as a lien on the equipment or property, is required -Maximum loan-to-value ratio of 95% -Borrowers must contribute a minimum of 5% (in the form of cash or documented project expenditures) toward project costs -Proforma debt service coverage of at least 1.0x Fees -$50 non-refundable application fee -Initial fee of 1.25% of the loan amount payable at closing -No ongoing program fees Required Documentation -Three most recent fiscal years of audited financial statements -Proof of adequate property and business insurance

Important dates

Opened

Jul 6, 2020

Application deadline

Ongoing

Expected award announcement

7/6/2020

Period of performance

Ongoing

Funding details

Total estimated available

$16,000,000.00

Estimated amount per award

Between $25,000.00 and $1,500,000.00

Expected number of awards

Dependant on number of submissions received, application process, etc.

Letter of intent required

No

Matching funds

5%

Matching notes

-Borrowers must contribute a minimum of 5% of the project costs -The borrower's funds must be in the form of cash or document project expenditures -For refinancing transaction, the borrower's funds must come from the equity in the property

Funding source

Other

Funding source notes

Revolving loan fund

Funding method

Advance(s)

How to apply

Read the full guidelines on the grantor's site, then apply there. Nothing is submitted through this site.

Submission: email: [email protected]

• Grant guidelines & application ↗
• State Treasurer's Office ↗
• Original listing on grants.ca.gov ↗

Questions about this grant: email: [email protected]; tel: 1-916-653-2799;