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Community Health Center Capital Fund was recently awarded a $2 million program-related investment loan and a $150,000 grant from Opportunity Finance Network’s Finance Justice Fund to support its direct loan program. The award will enable Capital Fund to increase its capacity to offer affordable loans to Federally Qualified Health Centers (FQHCs) across the US for construction, renovation, and expansion of health center facilities and related equipment. As a key component of the primary care safety net in the United States, in 2020, FQHCs served almost 30 million patients annually, 58% of whom were racial and/or ethnic minorities, 30% of whom lived in rural communities and 91% of whom had low-incomes.

“Congratulations to Community Health Center Capital Fund for its Finance Justice Fund award. This capital will help address long-standing issues of disinvestment, the racial wealth gap, and persistent poverty in our country,” said Opportunity Finance Network (OFN) President and CEO Lisa Mensah. “CDFIs, like Capital Fund, and Finance Justice Fund partners and investors are helping to advance social, economic, and racial justice one loan at a time.”

Launched by OFN in 2020, the Finance Justice Fund is a new socially responsible investment that aims to bring $1 billion in capital from corporate and philanthropic partners to individuals and communities in America most underestimated and underserved by mainstream finance. Twitter was the Fund's first investor, followed this summer by Wells Fargo. The goal of the Finance Justice Fund is to drive affordable, responsible capital to Black, Latinx, Indigenous, and rural communities. To learn more about the Finance Justice Fund and view a full list of Fund partners and awardees, please visit OFN.org.

For more information about Capital Fund’s program related investment opportunities or FQHC loan products, please contact Brandon Boyle, Director of Loan Programs, at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone at 617-988-2265.

 

 

On July 2, 2021, Capital Fund closed financing for a $26.3 million renovation and relocation project for Grace Community Health Center, dba Grace Health, in Corbin, KY. 

In addition to Capital Fund's $12.2 million New Markets Tax Credit (NMTC) allocation and $2 million source loan, funding for this project also included contributions from Primary Care Development Corporation, Local Initiatives Support Corporation (LISC), Forcht Bank, and Capital One. The project also utilized the HRSA Loan Guarantee Program (LGP) to provide additional security for the transaction.

Capital Fund's affiliate, Capital Link, provided NMTC advisory services to Grace Health and successfully attracted $20.2M of NMTC subsidization for Grace’s medical campus project, as well as the HRSA LGP. 

Grace Health plans to renovate and transform an existing 88,000-square-foot building into a state-of-the-art medical campus. This project will allow Grace Health to better respond to unmet medical, dental, mental health and substance abuse treatment needs in Knox and Whitley Counties through consolidating four smaller satellite sites into the proposed larger facility. The resulting medical campus, which will have 32 exam rooms, will allow the health center to serve an additional 14,000 patients annually. Pre-construction began in November 2019 and construction is expected to finish in 2022. In total, Grace Health anticipates adding between five and seven providers and 15 support staff.

The expansion project is situated in a severely distressed rural neighborhood in Kentucky and the project's census tract/NMTC eligibility shows the poverty rate of this service area is at 29% and the unemployment rate is 1.35 times the national average. The region has suffered severe economic hardship as coal mining, once a significant industry, has decreased due to a national shift away from coal and toward other energy sources.

Grace Health is a Federally Qualified Health Center (FQHC) serving the southeastern Kentucky counties of Bell, Clay, Knox, Laurel, Leslie, and Northern Whitley. The health center currently has nine satellite clinics consisting of seven primary care clinics, a women's care facility, and a pediatric clinic. In addition, Grace Health operates 32 school-based health centers. Learn more here >

To learn more about Capital Fund’s loan products, including New Markets Tax Credits, please contact Brandon Boyle, Director of Loan Programs, at This email address is being protected from spambots. You need JavaScript enabled to view it..

 

On June 15, 2021, Capital Fund received a $1.8 million award from the United States Treasury's CDFI Rapid Response Program (CDFI RRP). These funds, as part of $1.25 billion in total allocated to 863 community development financial institutions (CDFIs) nationwide, will provide necessary capital for Capital Fund to respond to economic challenges created by the COVID-19 pandemic, particularly in underserved communities. This award will be used to provide loans for health center capital projects and operational needs, in support of their ongoing response and recovery from the pandemic.

The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic. CDFI RRP awards will reach a wide variety of low-income communities across the United States impacted by the COVID-19 pandemic. The awardees include CDFIs that serve rural, major urban, and minor urban markets. A CDFI can be a bank, credit union, loan fund, or venture capital fund. Learn more here >

For questions, please contact Brandon Boyle, Director of Loan Programs, via email at This email address is being protected from spambots. You need JavaScript enabled to view it..

On June 24, 2021, Capital Fund provided financing for The Providence Community Health Centers, Inc., (PCHC) to support its nearly $14 million expansion project.

Capital Fund contributed a $7.5 million New Markets Tax Credit (NMTC) allocation and a $2 million source loan for PCHC’s new 27,000-square-foot facility at 31 Atwood Street in Providence, RI. In addition to financing provided by Capital Fund, project financing also included a NMTC allocation and source loan from Primary Care Development Corporation (PCDC), and $3.8 million equity investment from PCHC.

The proposed project, situated in a severely distressed neighborhood of Providence, will transform a vacant lot into a comprehensive health care center with services including OB/GYN, pediatrics, adult medicine, family medicine, behavioral health, specialty care, urgent care (i.e. express center) and lab. The first floor of the new facility will offer a conference room, waiting room, nurse’s station, break room, storage rooms, x-ray rooms, a blood lab room and 12 exam rooms. The second floor will offer 27 exam rooms, a waiting area/lobby and three nurse’s stations. The project is expected to provide space for and support up to 600 full-time employees (FTEs) in the community and serve up to 86,000 patients by 2028, compared to 474 FTEs and 61,000 patients in 2019. The project is also expected to increase patient visits by 42%, growing from 255,000 in 2019 to an estimated 362,000 in 2028.

PCHC is the largest primary health care provider in Providence and the only Federally Qualified Health Center (FQHC) in the immediate area of the project site. In addition to its 13 current health center sites, PCHC also operates a school-based program and a dental clinic serving children under the age of 19 and pregnant women. PCHC provides comprehensive and culturally sensitive primary health care services to more than 50,000 residents of Providence and its surrounding areas. More than 92% of patients are racial and/or ethnic minorities. Of the patients who reported their income, 98% are at or below 200% of the Federal Poverty Level. Learn more here.

To learn more about Capital Fund’s loan products, including New Markets Tax Credits, please contact Brandon Boyle, Director of Loan Programs, at This email address is being protected from spambots. You need JavaScript enabled to view it..

On January 15, 2021, Capital Fund participated in a financial closing for CommuniHealth Services, to support its $13.1 million expansion project.

Capital Fund contributed a $6.5 million New Markets Tax Credit (NMTC) allocation for CommuniHealth’s new facility. In addition to Capital Fund’s allocation, project financing also included $5.5 million NMTC allocation from Primary Care Development Corporation (PCDC), $5 million in State of Louisiana tax credits, and a PCDC $5 million source loan, of which Capital Fund bought $2 million.

Additionally, Capital Link provided operational facility planning and NMTC technical services to assist CommuniHealth in aligning service delivery objectives with design, preparing financial projections as well as a business plan, and NMTC intake and community impact information, which Capital Link successfully presented to and attracted interest from Federal and State CDE/CDFI Allocatees, source loan providers and two different equity investors (Federal and State). Capital Link assisted MCMC in its collaboration with multiple transaction parties throughout the closing process to successfully deliver all of the many deliverables required to close and fund a NMTC leveraged transaction.

The new 41,260-square-foot facility—a 27,500-square-foot increase from its current clinics—will consolidate its three existing sites and offer on-site pharmacy, radiology, and laboratory services, as well as community space that can be converted into a 25-bed shelter. The project will increase medical, dental, and behavioral services, allowing CommuniHealth to serve an additional 3,375 patients annually.

CommuniHealth is a Federally Qualified Health Center established in Bastrop, LA, in 2002, providing care to the uninsured and low-income residents of Morehouse Parish. CommuniHealth provides medical, dental, and behavioral health care services for patients of all ages, as well as pharmacy, substance abuse counseling, transportation, translation, specialty care/services, health education, and comprehensive outreach. Learn more here.

For more information about Capital Link’s capital planning services please contact Jonathan Chapman, Chief Project Officer at This email address is being protected from spambots. You need JavaScript enabled to view it.. To learn more about Capital Fund’s loan products, including New Markets Tax Credits, please contact Brandon Boyle, Director of Loan Programs, at This email address is being protected from spambots. You need JavaScript enabled to view it..

On January 12, 2021, Capital Fund participated in a financial closing to provide Lifespan Health with a $7.3 million NMTC allocation for the construction of a new $7.7 million health center in Savannah, TN. In addition to Capital Fund’s NMTC allocation, the project was also funded by $4.2 million in long-term debt from SunTrust now Truist.

The new 19,500-square-foot facility will allow Lifespan Health to serve approximately 4,200 additional patients annually. The clinic will have 24 total exam rooms, including space for telehealth visits and multiple nurse’s stations. The new building will expand Lifespan Health’s family practice, pediatrics, OB/GYN, and behavioral health services.

As of February 2021, most construction work on the project has been completed and the health center expects to be able to see patients in the new facility in March 2021.

Capital Link provided early facility planning technical assistance over multiple site visits, working closely with staff to identify program priorities and space requirements.  Additionally, Capital Link provided comprehensive financing assistance services that included business planning, financial forecasting, as well as served as the health center’s NMTC financial advisor for the $7.3 million NMTC transaction.

Lifespan Health is strongly committed to providing the highest quality and most affordable healthcare to its patients while also improving the health, lifestyle, and well-being of the communities they serve. Learn more here.

For more information about Capital Link’s capital planning services please contact Jonathan Chapman, Chief Project Officer at This email address is being protected from spambots. You need JavaScript enabled to view it.. To learn more about Capital Fund’s loan products, including New Markets Tax Credits, please contact Brandon Boyle, Director of Loan Programs, at This email address is being protected from spambots. You need JavaScript enabled to view it..

On December 22, 2020, Capital Fund participated in a financial closing to support construction of Five River Health Centers’ (Five Rivers) nearly $31.6 million new facility in Dayton, OH.

Capital Fund contributed a $9 million New Markets Tax Credit (NMTC) allocation for Five Rivers’ new 84,000-square-foot facility, a 34,000-square-foot increase from the five leased sites that will be consolidated into the new location. In addition to Capital Fund’s allocation, project financing also included $14 million from Dayton Region New Markets Fund and $7 million from Urban Action Community Development.

Capital Link worked with Five Rivers’ management team throughout the entire planning process, including providing a market assessment/patient demand analysis, preliminary functional program planning, an eight-year financial forecast that was crucial to securing the leveraged debt in the transaction, and structuring closing assistance throughout the NMTC closing process.

Slated to be completed by December 2021, the new clinic will provide 88 exam rooms and 10 dental operatories, and will enable the health center to serve an estimated 14,000 additional patients annually. The new facility will offer expanded behavioral health, medical services, dental services, psychiatry, substance abuse, pharmacy, enabling services and complementary services.

Founded in 2011, Five Rivers provides both primary and specialty care service to low-income patients in Dayton, OH, currently serving more than 25,000 patients annually with more than 87,000 visits in the Greater Dayton community. Five Rivers also runs one of the largest physician residency programs in the country in collaboration with Miami Valley Hospital. Learn more here.

For more information about Capital Link’s capital planning services please contact Jonathan Chapman, Chief Project Officer at This email address is being protected from spambots. You need JavaScript enabled to view it.. To learn more about Capital Fund’s loan products, including New Markets Tax Credits, please contact Brandon Boyle, Director of Loan Programs, at This email address is being protected from spambots. You need JavaScript enabled to view it..

 

On December 17, 2020, Community Health Center Capital Fund (Capital Fund) participated in a financial closing to support Pueblo Community Health Center, Inc.’s (PCHC) nearly $32.6 million expansion in Pueblo, CO.

Capital Fund contributed a $7.5 million New Markets Tax Credit (NMTC) allocation for the expansion and replacement of PCHC’s current 14,000-square-foot Park Hill clinic to a new 64,000-square-foot facility in the East Side neighborhood. In addition to Capital Fund’s allocation, project financing also includes $15 million from the City of Denver and the Colorado Housing and Financing Authority, and $8.2 million from the Rose Urban Green Fund, as well as a direct loan of $12 million from Self-Help Venture Fund. PCHC’s contribution of $11.6 million cash and $9 million in net NMTC equity, for a total of $20.6 million (or 63%) of the source funds, is significant.

Once complete, the new three-story clinic will include primary care, women services, clinical laboratories, a pharmacy, dental, behavioral health, outreach services, reception area, waiting rooms, site work, landscaping, and an elevator. Upon completion in October 2021, the current Park Hill clinic staff will relocate to the new facility.

According to the health center’s management, the $32.6 million state-of-the art, net-zero energy facility represents the largest investment in Pueblo’s East Side in decades. The new clinic is projected to increase number of patients and visits annually from 27,000 and 130,500 in 2019, respectively, to 36,000 and 163,000 by 2027. Permanent FTEs are projected to grow from 320 in 2019 to 405 in 2027.

PCHC has been providing primary health care services to Pueblo’s underserved population since 1983. Learn more here.

For more information about Capital Fund’s loan products, including New Markets Tax Credit, please contact Brandon Boyle, Director of Loan Programs, at This email address is being protected from spambots. You need JavaScript enabled to view it..

As a leader in providing New Markets Tax Credits (NMTC) financing to Federally Qualified Health Centers (FQHCs), Community Health Center Capital Fund has successfully secured a total of $130 million in allocation, including the recently announced $50 million award. Capital Fund is dedicated to securing the maximum NMTC allocation possible to benefit FQHCs across the country. To help FQHCs prepare for NMTC financing, Capital Fund has awarded the following health centers with NMTC Preparation Program grants:

Each health center will receive a grant from Capital Fund to be applied toward the cost of an engagement agreement with our affiliate Capital Link, to develop the materials needed for a successful NMTC financing for their capital projects. Components supported by grant funding may include: a transaction summary detailing the proposed project and its expected community benefits, a full business plan with a seven-year financial projection, market assessment, project design assistance, operational assessment, NMTC structuring including securing leverage debt (if needed), and guidance and assistance throughout the closing process.

Each grantee recently completed the initial phase of our NMTC Preparation Program, during which they received technical assistance from Capital Link. All plan to seek NMTC financing for a capital project in 2021 or 2022.