Low cost loans available for California Non-Profit Health Care Facilities

CBBS has been asked by the California State Treasurer's office to help spread the word about low cost 3% HELP II loans for health care facilities, as blood banks are listed as qualifying facilities.

Reproduced below is an article by current State Treasurer, Bill Lockyer. More information can be found regarding qualifications and how to apply HERE.

In 2008, North County Serenity House (NCSH) carried on its balance sheet seven different loans totaling $750,000 with interest rates as high as 9.25 percent. Wanting to lower its borrowing costs but facing a tight credit market, NCHS turned to the California Health Facilities Financing Authority (CHFFA) for help. The decision paid dividends. Using its Healthcare Expansion Loan Program II (HELP II), CHFFA refinanced NCSH’s loans, lowering the interest rate to three percent over 15 years and saving the facility nearly $475,000.

Located in San Diego County, NCSH provides a broad spectrum of drug and alcohol addiction treatment services to single women and women with children. Its programs include residential treatment, outpatient services, child care, job readiness and transitional housing.

HELP II provides a crucial source of financing for small or rural health care facilities like NCSH. These low-cost loans are particularly important in these challenging economic times, when banks are tightening the reins on lending. Many Californians look to these facilities to meet their health care needs. HELP II helps them provide patients with better, more accessible care.

Unfortunately, many eligible health care facilities are not applying for these loans. Under HELP II guidelines, nonprofit public health facilities, with annual gross revenue of up to $30 million, can receive maximum loans of $750,000 at three percent interest. To further expand access to financing, rural facilities and district hospitals are exempt from the gross revenue limit.

HELP II fixed rate loans may be used to purchase or construct new facilities, remodel or renovate existing facilities, or purchase equipment or furnishings. Eligible facilities include but are not limited to, alcohol recovery facilities, mental health clinics, children’s group homes, developmentally disabled facilities, community clinics, and adult day care health facilities. CHFFA has loaned more than $52 million under HELP II since the program started in 1988.

For more information, go to www.treasurer.ca.gov/chffa and click on HELP II Financing Program.