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 provides Health Center Program grantees a guarantee of up to 80% of financing needed to support construction, renovation, and modernization of medical facilities. The program facilitates access to capital funding and reduces financing costs to support capital infrastructure projects. 

The program is currently being updated. For more information, visit: https://bphc.hrsa.gov/programopportunities/loan-guarantee-program.html

Capital Link's Business Plan Manual may be a helpful reference for health centers interested in 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 percent of the loan’s outstanding principal. Additional information on the USDA’s programs can be found at www.rurdev.usda.gov.