Credit enhancement can improve a health center’s ability to obtain a loan, lower the interest rate, and/or improve the loan terms. Capital Link has assisted health centers with the following credit enhancement programs:

The HRSA Facilities Loan Guarantee Program is a $60 million loan guarantee program for facilities development and managed care networks and plans. The program provides an 80 percent guarantee on the principal amount of loans made by non-federal lenders for construction, renovation, and modernization of medical facilities that are owned by federally funded Section 330 health centers. The loans may be used for: land and building purchases, renovation and new construction costs, equipment and “fit-out” costs, a limited amount of debt refinancing (not to exceed 30% of the overall project), financing and consulting fees, capitalized interest during construction, and limited working capital during a start-up phase.

HRSA Loan Guarantee Program Application:

• application available as Word or PDF
• spreadsheet for attachments 4,5, 8, 9 and 10  in Excel (please note that there is one tab for each attachment on this spreadsheet)

The HRSA Loan Guarantee Program Application has recently been revised. This document, along with a Capital Link Business Plan Manual (see the Publications page), constitutes the updated application information for community health centers that are interested in applying to the program. Please contact us for more information on this program.

The USDA Community Facilities Guarantee Program provides guarantees on loans provided by lenders such as banks, savings and loans, mortgage companies that are affiliated with bank holding companies, banks of the Farm Credit System, or insurance companies regulated by the National Association of Insurance Commissioners. Loans are guaranteed up to 90% of the loan’s outstanding principal. Additional information on the USDA’s programs can be found at www.rurdev.usda.gov.