CA Treasurers Office - Distressed Hospital Loan Program - Due 7/31/23
On May 15, 2023, the Distressed Hospital Loan Program (Program) was established through the approval of urgency legislation, Chapter 6, Statutes of 2023 (Assembly Bill 112). The Department of Health Care Access and Information (HCAI) and the California Health Facilities Financing Authority (CHFFA) will jointly implement the new Program to make interest-free loans for working capital needs.
Program Eligibility: Must be a not-for-profit hospital or public hospital in significant financial distress; OR must be a governmental entity representing a closed hospital, except as otherwise provided, to prevent hospital closure or facilitate the reopening of these hospitals.
Please Note: Not-for-profit hospitals and public hospitals that belong to integrated health care systems with more than two separately licensed hospital facilities are ineligible for loans under this Program.
$150 million available in one-time funding
Zero percent (0%) interest rate loans
Loan term is repayable over 72-months, with an initial 18-month payment deferment period at the beginning of the loan term
Loan Security: 20% of Hospital’s Medi-Cal checkwrite payments
In order to be considered for a loan under the first funding round of the Distressed Hospital Loan Program, a complete application must be submitted to the California Health Facilities Financing Authority by no later than 5:00pm Pacific Time (PT) on July 31, 2023.
If a hospital would like the Department of Health Care Access and Information to conduct a preliminary review of a hospital’s eligibility and determine the hospital’s eligibility prior to the hospital spending resources on developing a Turnaround Plan, an applicant must submit its application with all items except the Turnaround Plan by no later than 5:00pm (PT) on June 30, 2023.
Submit a complete application to the California Health Facilities Financing Authority by email as a Portable Document Format (PDF) attachment to email@example.com.
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