PCDC’s mission as a Community Development Financial Institution (CDFI) is to create healthier and more equitable communities by building, expanding, and strengthening the national primary care infrastructure. CDFIs are private organizations that meet the needs of underserved communities by providing responsible, affordable lending. A loan from a CDFI isn’t a one-and-done transaction — it’s a partnership built on a shared mission to meet the socioeconomic needs of our communities.
As a non-profit CDFI focused exclusively on health care, PCDC has provided direct financing and leveraged more than $1.2 billion across 130 primary care health center projects, yielding more than $5 of private investment for each $1 of public investment.
Our Policy Issues
Protect the CDFI Fund and its grant programs in federal budget allocations.
Through various awards programs, the CDFI Fund supports financial institutions recognized by the US Treasury for their expertise in providing services and support to low-income communities. Programs funded through the CDFI Fund use a relatively small amount of federal money to leverage an enormous amount of investment into underserved communities, creating jobs, growing businesses, and promoting the revitalization of local economies.
Using our unique expertise in health care, PCDC provides meaningful lending to communities that need it most. PCDC advocates for continuously upholding The Fund and rallying the community development industry to support the shared mission of advancing equitable investment nationwide.
NEW MARKETS TAX CREDIT PROGRAM
Establish the New Markets Tax Credit (NMTC) Program as a permanent and continuous federal resource.
The NMTC Program uses tax credits to attract private investment into distressed communities, thereby spurring job creation and other economic growth by providing financing with non-traditional and more flexible terms than conventional debt. As a result, borrowers benefit from below-market interest rates, higher loan-to-value ratios, and longer loan maturities.
PCDC’s NMTC program expands primary care access across the country by meeting the capital needs of community-based health providers. Since 2008, PCDC’s NMTC Program has invested $222 million to grow and enhance primary care and other vital health services. The continued renewal and extension of this indispensable resource will help meet the demand to revitalize communities, create jobs, increase economic opportunity, and improve lives in a sustainable and forward-thinking way.
THE COMMUNITY REINVESTMENT ACT (CRA)
Protect the integrity of Community Reinvestment Act (CRA), which focuses on connecting low- and middle-income communities with fair, affordable, and accessible financial products and services.
CDFIs rely on the CRA to incentivize banks to make credit and capital available to underinvested communities — nearly 35 percent of PCDC’s capital available for lending is from CRA-eligible financial institutions. The CRA has been a primary factor enabling the CDFI industry to grow and deliver responsible financial services and products to low-wealth communities. Changes to the CRA regulatory framework could have a significant adverse impact on the CDFI industry’s capacity to lend and invest in low-wealth markets and contribute to economic revitalization.
Through partnerships with CDFIs such as PCDC, banks can make smarter, more impactful loans in the hardest-hit communities because of CDFIs’ lending expertise and strong industry track record. Any changes made to the CRA must support and expand CDFIs’ abilities to meet the credit needs of underserved communities and enhance the lives of those they serve. Without thoughtful regulation through a framework like the CRA, PCDC is particularly concerned that the CDFI industry may lose investment from larger financial institutions, damaging the ability to impact meaningful change in communities that need it most.
Read PCDC’s comments on proposed changes to the CRA
MAINTAINING THE HRSA LOAN GUARANTEE
Ensure long-term federal funding for the HRSA Loan Guarantee Program.
Many CHCs have difficulty obtaining affordable loans for their capital projects due to the variable nature of their revenue streams. The Health Resources and Services Administration (HRSA) Health Center Facility Loan Guarantee Program (LGP) enables health centers to access capital by backing the lender with an 80 percent loan guarantee, thereby unlocking previously unattainable revenue sources for CHCs.
The LGP allows CHCs to expand and modernize their facilities — ultimately providing greater community access to primary care, dental, behavioral health, vision, and pharmacy services. PCDC strongly advocates for continued and increased congressional budget allocations to bolster this critical program.
A cover story in The Novogradac Journal of Tax Credits featured PCDC’s financing for CrescentCare in New Orleans, Louisiana. Through over $21 million in NMTC financing, CrescentCare vastly expanded its primary care, dentistry, and pediatric offerings to a community hard-hit by Hurricane Katrina.