ARLINGTON, Va. and OAKLAND, Calif., Feb. 23, 2016 /PRNewswire-USNewswire/ -- Capital Impact Partners today announced the launch of the Healthier California Fund, a new $20 million loan fund for projects that support growth and innovation at community health care centers and clinics in underserved, low-income California communities. This initiative, in partnership with The California Endowment, will help build the capacity of health centers and clinics throughout the state to deliver quality health care to an even greater number of patients in need, provide better interest rates for projects that support innovative health care approaches, and support health centers that need technical assistance to grow their operations.
"Through the Healthier California Fund we can positively impact communities throughout California by financing innovative health care solutions that deliver social impact in underserved communities and address the social determinants of health in those communities," said Scott Sporte, Capital Impact Partners' Chief Lending Officer. "Improving services and access to affordable, quality health care in local areas in need will help California build capacity to fully implement the Affordable Care Act, and ensure all people have access to affordable, quality, convenient health care in local settings."
The Healthier California Fund Fund fills a much needed niche for health centers and clinics looking for financing to grow their operations, fully implement the Affordable Care Act, and better serve vulnerable and uninsured patients. Unlike loan products offered by traditional financial institutions, this mission-driven fund offers a variety of key features designed to support and improve health care across California including:
- Flexible terms and below-market rates.
- Special rates for "innovation" projects.
- Financial support for technical assistance.
- Financing for real estate acquisition, construction and expansion, equipment purchasing, and working capital.
- Loans from $500,000 to $6 million.
"The California Endowment is committed to improving the health of all communities across California. We are pleased to deepen our partnership with Capital Impact Partners to support community health centers as they expand and innovate to serve the needs of our historically underserved communities," said Dan DeLeon, chief financial officer and Vice President, The California Endowment.
Capital Impact Partners, a nonprofit Community Development Financial Institution, employs an investment and social impact strategy that allows them to partner with community health care providers throughout California to increase access to quality care, improve health outcomes, spur economic development supporting healthy communities, and encourage innovation in the delivery of quality healthcare. Over its 30-year history, Capital Impact Partners has financed more than 50 percent of California's Federally Qualified Health Centers (FQHC). With over $250 million in loans, the organization is the state's largest nonprofit health care lender.
"When we set out to build our new facility, we had no idea how critical Capital Impact would be to our project. The loan process was straightforward and staff support exceptional. We truly found a partner ready, willing, and able to help us serve the thousands of people in our community in need of access to affordable health care," said Valerie Jonas, Chief Development Officer at Axis Community Health in Northern California.
Capital Impact provided Axis with a $6 million loan to help the center serve an additional 17,000 patients through the construction of 27 new exam rooms, seven mental health counseling rooms, patient education facilities, and a pharmacy. Other examples of health centers that Capital Impact has provided loans to include:
- Clinic Sierra Vista - $2 million investment for construction of facilities to provide comprehensive, community-based services including: health care, behavioral health, drug and alcohol counseling, and nutrition and education programs.
- Lifelong Medical Care - $900,000 to grow medical, mental health, dental and vision services.
- South Central Family Health Center - $1.77 million in construction loans to build exam rooms, labs, and diabetic care and prenatal care facilities.
- St. John's Well Child - $3.45 million for new exam rooms, dental chairs, and mental health rooms for comprehensive services.
These projects bring needed services to more than 38,000 patients in underserved communities and improve local economies by providing more than 200 jobs and employment opportunities for both construction and operations.
"As a mission-driven lender, we invest in health care projects that serve low-income, uninsured populations often considered too risky for traditional banks," said Ellis Carr, Capital Impact's Chief Financial Officer and incoming President and CEO. "It is our objective to see that good projects that deliver social impact get the financing they need and that this investment benefits all Californians."
About Capital Impact Partners
Capital Impact Partners transforms underserved communities into strong, vibrant places of opportunity for people at every stage of life. We deliver strategic financing, incubate new social programs, and provide capacity-building to help ensure that low-to-moderate-income individuals have access to quality health care and education, healthy foods, affordable housing, and the ability to age with dignity. A nonprofit community development financial institution, Capital Impact Partners has disbursed more than $2 billion to revitalize communities over the last 30 years. Headquartered in Arlington, Va., Capital Impact Partners operates nationally, with local offices in Detroit, Mich., and Oakland, Calif. Learn more at www.capitalimpact.org.
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SOURCE Capital Impact Partners