Time Limited Grant Opportunities

Purpose:

This program will provide a borrower with access to low interest rate capital markets through the issuance of tax-exempt and taxable commercial paper notes.

Description:

Eligibility

General Requirements

-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 or public health facility (e.g., district hospital) as defined in the Authority’s Act (Section 15432(e) of the California Government Code)

-Must have been in existence for at least three years, providing the same types of services

-Must demonstrate evidence of fiscal soundness and the ability to meet the terms of the proposed loan

Use of Funds

Funds may be used for:

-Construction, remodeling, renovation, and/or improvements

-Land acquisition

-Acquisition of existing health facilities

-Equipment and/or furnishings

-Refunding of prior debt

-Working capital for start-up facilities

-Costs of bond issuances, feasibility studies & reimbursement of prior expenditures

Loan Terms

-Any commercial paper issued by Authority must receive short-term rating of at least A-1/P-1/F-1 by at least one nationally recognized rating agency

-Must be issued in denominations of $100,000

-Final maturity date cannot exceed 40 years

-Commercial paper application must include a detailed description of capital projects to be funded by proceeds

Fees

-No application fee

-Initial fee of 0.05% of the issue amount (maximum $100,000)

-Annual administrative fee; greater of $5,000 or 0.0175% of the maximum amount of notes outstanding during the billing year

Required Documentation

-Three most recent fiscal years of audited financial statements