Lending
Explore Our
Lending Guidelines
Capital Fund offers flexible loan terms and conditions depending on the health center. General parameters are outlined below, but may be modified as the situation requires.
Eligibility:
Federally-Qualified Community Health Centers (Section 330s and Look-alikes); other similar organizations may be eligible as determined on a case-by-case basis.
Repayment:
Flexible terms, depending on loan type: interest-only or partially amortizing (with balloon payment at maturity), or fully amortizing (amortization schedule TBD).
Loan Purposes:
Real estate acquisition, construction, renovation, expansion, leasehold improvements; related equipment purchases; bridge loans for grants, fundraising campaigns or in conjunction with historic or other tax credits; NMTC-related loans and day loans.
Rate:
Interest rate based on funding source, current market conditions and underwriting/risk analysis of borrower; designed to be competitive with the current market.
Loan Size:
Up to $5 million. Loans of larger size may be available through participating agreements with other lenders. Please contact Capital Fund to discuss your needs.
Collateral:
Senior or subordinate position on real estate and other collateral, evaluated on a case-by-case basis.
Term:
Up to 120 months; flexible amortization schedules.
Fees:
1% origination fee. Borrower pays all costs associated with loan closing, including legal, title/recording, appraisal, environmental assessments, etc.
Loan Programs Tailored to
Health Centers
Capital Fund offers several lending programs to support your financing needs. As a mission-driven lender with deep health center expertise we design flexible products focused on supporting your financial needs.
Direct
Health centers in need of financing for cashflow, equipment and/or facility purchases, construction, or renovations.
- 1 – 10-year terms
- Flexible interest-only periods and collateral requirements
- 1 – 20-year amortization periods
LoanPLUS
Small health centers struggling with cashflow or access to credit from banks. Health Centers with:
- Under $3 million in net assets
- 25 days or less of cash on hand
- Less than $200K in net operating income
New Markets
Health centers building or renovating facilities with project budgets of $5 million or more:
- Low interest rate, forgivable loan after 7-year term
- Forgivable loan contributes up to 20% of project budget
- Competitive application process
Solar Loan
Health centers purchasing and installing solar microgrid and energy storage systems at their facilities:
- 100% financing of solar and energy storage equipment
- Solar and battery equipment are only necessary collateral
- 10-year with 2-year interest-only period
Have a question about our loan programs?
Lending FAQs
We work almost exclusively with CHCs and look-alikes, so we understand the complex funding environments and operational complexities you operate in. We’re here to help you move forward - even when times are uncertain.
- Construction Loans: Up to a 10-year term
Interest-only during construction, then principal + interest over a 20-year amortization - Working Capital Loans: 5-year term
Interest-only initially (based on financial review), then principal + interest over 20 years - All loans feature fixed interest rates, with terms based on your specific needs.
We don’t use standard applications. Instead, we provide a due diligence checklist and begin with an initial review of your financial statements and a meeting to discuss your needs. Based on that, we’ll issue preliminary loan terms and request additional information to complete full underwriting.
On average, underwriting takes about 2 months—sometimes less, sometimes more, depending on the loan type and how quickly you can provide requested documentation. Loan closings typically take 2 to 3 months, especially for construction projects that require third-party reports like appraisals or environmental assessments.
In addition to an origination fee, Capital Fund collects reimbursable costs associated with the closing, which may include:
- Appraisals
- Environmental reports
- Legal fees
- Other third-party services required for your loan
Mission
By fostering a culture of trust, collaboration and respect, we support health centers to deliver high-quality healthcare. We are dedicated to amplifying health center impact by providing comprehensive support for sustainability, growth and resiliency through resources, technical assistance, and innovative solutions that help health centers leverage their assets, articulate their value and deliver patient-centered care that meets the highest standards. We pursue excellence with humanity.
Vision
We believe in a just future in which every individual is treated with dignity and respect and has access to quality healthcare, regardless of their ability to pay.