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Healthcare Expansion Loan Program II (HELP II)

Grantor:
State Treasurer's Office
Portal ID:
1641
Status:
Active
Opportunity Type:
  • Loan
Last Updated:
 | 
Categories:

Details

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

 

Eligibility Requirements

Eligible Applicants:

  • Individual
  • Nonprofit

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.

Eligible Geographies:

None.

Matching Funding Requirement:

-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

Important Dates

The date on which the grantor expects to announce the recipient(s) of the grant.
7/6/2020
The length of time during which the grant money must be utilized.
Ongoing

Funding Details

The total projected dollar amount of the grant.
$16,000,000
A single grant opportunity may represent one or many awards. Some grantors may know in advance the exact number of awards to be given. Others may indicate a range. Some may wish to and wait until the application period closes before determining how many awards to offer; in this case, a value of “Dependent” will display.
Dependent
Grant opportunities representing multiple awards may offer awards in the same amount or in varied amounts. Some may wish to wait until the application period closes before determining per-award amounts; in this case, a value of “Dependent” will display.
$25,000 – $1,500,000
Certain grants require that the recipient(s) provide a letter of intent.
No
Certain grants require that the recipient(s) be able to fully or partially match the grant award amount with another funding source.
5%
The funding source allocated to fund the grant. It may be either State or Federal (or a combination of both), and be tied to a specific piece of legislation, a proposition, or a bond number.
  • Other

Funding Source Notes:

Revolving loan fund

The manner in which the grant funding will be delivered to the awardee. Funding methods include reimbursements (where the recipient spends out-of-pocket and is reimbursed by the grantor) and advances (where the recipient spends received grant funds directly).
  • Advance(s)

How to Apply

State agencies/departments recommend you read the full grant guidelines before applying.

Resources

For questions about this grant, contact:
1-916-653-2799, chffa@treasurer.ca.gov

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