The Primary Care Development Corporation (PCDC) announced it has been re-designated as the Lender Coordinator for the Health Resources & Services Administration’s (HRSA) Health Center Facility Loan Guarantee Program (LGP), which can guarantee more than $880 million in new loans to health centers.
The Loan Guarantee Program facilitates access to capital funding by guaranteeing up to 80 percent of financing to support capital for community health center facility projects.
“The HRSA Health Center Facility Loan Guarantee Program is critically important for providing a credit enhancement that entice private lenders to provide capital to health centers,” said Anne Dyjak, PCDC’s Managing Director for Capital Investment. “It helps ensure that capital flows to support the expansion of the centers’ vital services in underserved communities. We are extremely pleased to continue our 11-year role as the LGP’s national administrator and support HRSA with the delivery of this important resource.”
The credit enhancement provided by the LGP supports health centers in accessing capital and more affordable financing, strengthening health services including primary care and behavioral health. In FY 2018, Congressional action increased HRSA’s loan guarantee authority, totaling more than $880 million. Recent changes by HRSA have streamlined the process and make the program even more accessible to lenders to unlock additional financing for health centers and underserved communities that would benefit most.
Developed by HRSA through a 1997 congressional appropriation, the LGP supports loans to eligible health center program awardees for the construction, expansion, alteration, renovation and modernization of health center medical facilities. The program has guaranteed health center transactions supporting over $233.6 million in total development costs to build out more than 600,000 square feet of facilities space that serve 415,000 patients.
Eligible health centers must be active Health Center Program awardees, as defined under section 330 of the Public Health Services Act. Eligible lenders include non-federal lenders that are subject to regulation, examination, and supervision by an appropriate banking regulator, as well as Community Development Financial Institutions (CDFI) certified by the U.S. Department of the Treasury.
Learn more about how PrairieStar, a health center in rural Kansas, leveraged the HRSA Health Center Facility Loan Guarantee Program.