Capital Fund Provides Financing to Grace Health in Corbin, KY
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 >