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State Treasurer Fiona Ma announces approval of CHFFA COVID-19 Emergency HELP loan

California State Treasurer Fiona Ma, chair of the California Health Facilities Financing Authority (CHFFA), announced approval of the first COVID-19 Emergency HELP loan in the amount of $250,000 for Operation Samahan, Inc. (Operation Samahan) to increase space for a drive-thru clinic for COVID-19 screenings and services and to renovate an Operation Samahan-owned building in order to decrease the rent expense of utilizing a leased building.

“This inaugural loan will provide Operation Samahan with the resources needed to provide COVID-19-related services to the community as well as to improve the health center’s bottom line, which has been devastated by the COVID-19 pandemic,” said Treasurer Ma.

“It is my hope that additional borrowers will use this program to help them address the revenue reductions and increased expenditures wrought upon California health facilities by this terrible disease,” said Frank Moore, CHFFA Executive Director.

The COVID-19 Emergency HELP Loan Program was authorized by the CHFFA board in April 2020. The Program allocated $5 million from the Authority’s existing HELP II Loan Program to this new program and gave the CHFFA Executive Director the ability to lend up to $250,000 per borrower at zero interest to borrowers that can prove that they’ve been negatively impacted by COVID-19 and that provide evidence that they will use the loan proceeds to address this impact.

Eligible health facilities must have gross revenues of less than $30 million (except for rural health facilities and district hospitals), have been in existence for at least three years, provide evidence of impact by COVID-19, demonstrate fiscal soundness, and show readiness to proceed. Funds may be used for construction, remodeling, renovation, equipment, furnishings, working capital, and reimbursement of prior expenditures. There is no application fee for this program, only a 1% closing fee.

CHFFA was established in 1979 and was created to be the state’s vehicle for providing financial assistance to public and non-profit health care providers in our state through loans funded by the issuance of tax-exempt bonds. The diverse nature of the facilities funded by CHFFA reflects the changing health care needs of the state. From rural community-based organizations to large multi-hospital systems, CHFFA has financed a wide range of providers and programs throughout California. For more information on CHFFA’s COVID-19 Emergency HELP Loan Program; to apply for loan financing through CHFFA; or to learn about other funding opportunities, please visit CHFFA’s website.

This article was released by the California State Treasurer’s Office.