Reducing Capital Project Financing Costs: The HRSA Loan Guarantee Program and New Markets Tax Credits - NCA FEATURED

HRSA’s Health Center Facility Loan Guarantee Program (LGP) has a new lease on life, based on a new appropriation in 2018 which provides sufficient subsidy for HRSA to guarantee up to $900 million in new loans to health centers. The LGP is being expanded and updated to make the guarantee more attractive to the capital markets and more user-friendly for health centers. It offers Health Center Program awardees a guarantee of up to 80 percent of the financing needed to support construction, renovation, and modernization of medical facilities. Another critical source of low-cost capital and equity for health centers is the New Markets Tax Credit (NMTC) program, allowing many health centers to secure approximately 20-22 percent of their total facility project costs as equity. This session will describe the benefits to health centers of the LGP and NMTC, as well as eligibility requirements and resources available on both programs.