First authorized by Congress in 1997, the HRSA Health Center Facility Loan Guarantee Program (LGP) offers loan guarantees for the construction, renovation, and modernization of medical facilities operated by Section 330-funded health centers. Authorized under the Public Health Service Act, the guarantee can cover up to 80% of the principal amount of loans made by non-federal lenders. In 2018, Congress appropriated new funds for the program enabling HRSA to update and modernize it to provide guarantees for almost $900 million in loans to health centers going forward.

A loan guarantee is intended to:

  • Enhance the health center’s credit profile

  • Reduce the lender’s risk

  • Allow them to lend to health centers under more favorable terms than otherwise possible

For some centers, the guarantee could mean the difference between “yes” and “no” from a lender, while for others, it may allow the lender to offer a lower interest rate, a longer fixed-rate term, or a higher loan-to-value ratio.

The HRSA will announce the launch of the updated and expanded program at NACHC’s Policy & Issues Forum (P&I) in Washington, DC. While program details are still being finalized, Capital Link is working closely with HRSA to provide a range of trainings and assistance on the program to health centers and lenders.

Capital Link will hold two informal informational sessions to introduce the program to health centers at the P&I:

Could the HRSA Facilities Loan Guarantee Program Benefit Your Health Center?

Thursday, March 28, 2019, 9:00 a.m. – 10:00 a.m., Park Tower Room 8210
Presenter: Allison Coleman, CEO, Capital Link

Thursday, March 28, 2019, 3:00 p.m. – 4:00 p.m., Park Tower Room 8210
Presenter: Jonathan Chapman, Director of CHC Advisory Services, Capital Link

Application Assistance

As HRSA’s National Cooperative Agreement (NCA) partner, Capital Link can provide a range of technical assistance to health centers applying to the LGP. From early-stage project planning, to developing a business plan and financial projections, to identifying and negotiating with lenders, and structuring New Markets Tax Credit transactions in conjunction with the LGP, Capital Link is available to help. Depending on the size and complexity of your project and the demand for the program, a significant portion of these services may be covered by HRSA through its NCA with Capital Link.

For assistance, contact Jonathan Chapman, Director of Health Center Advisory Services, Capital Link at: This email address is being protected from spambots. You need JavaScript enabled to view it..