"The financing we received from Capital Impact will help us to continue to provide a high level of service to people in our community who need it most," said Zettie D. Page, MD, PhD, Chief Executive Officer at Tri-City Health Center. "Lenders like Capital Impact play an important role in providing the financing that health centers need to expand their services and ensure access to affordable, quality health care to the people in our community."
The total cost of the Tri-City's renovation financing is $2.1 million, with 50 percent funded through Capital Impact's Healthier California Fund and 50 percent from the Nonprofit Finance Fund. Both organizations are nonprofit Community Development Financial Institutions that specialize in lending to projects in low-income communities. This financing comes on the heels of a previous $6 million loan that enabled Tri-City to acquire the property in late 2015. Both organizations shared in the financing of that deal as well.
"Tri-City's new facility is a terrific candidate for financing through our Healthier California Fund because it significantly increases access to quality care for a population who might not otherwise receive it," said Scott Sporte, chief lending officer of Capital Impact Partners. "I am particularly excited that because of our mission-driven fund, we were able to offer a lower interest rate and allow Tri-City to put more of their money toward patient care versus repaying the loan."
The Healthier California Fund is a $20 million loan fund for projects that support growth and innovation at community health 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. In addition to standard financing, the fund provides low-cost loans for innovative health care approaches and technical assistance support that helps health centers and clinics grow their operations.
The Healthier California Fund fills a much needed niche for health centers and clinics looking for financing to grow their operations, fully implement the ACA 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
"When we consider financing a project, it's important they can deliver social impact. We are impressed by both Tri-City's track record of providing integrated-care services, but also the strategic thinking behind this facility right down to where it was located," said Ellis Carr, president and CEO at Capital Impact Partners. "Tri-City serves as a model for other projects we can finance through our Healthier California fund to benefit all Californians."
Tri-City is the only health center in the area that offers primary and preventive health care services to low-income and uninsured patients. The new facility is located near "Five Corners," a famous Fremont intersection where many of the patients already frequent to shop and work. With free parking, multiple bus routes, and a new rail transit station on the way, the clinic will be easily accessible. As a result of its location, Tri-City won a $400,000 Department of Health and Human Services HRSA New Access Point award.
The facility will also implement a Patient Centered Medical Home (PCMH) model which follows protocols to coordinate care across teams (i.e. medical, behavioral health, lab) and is particularly effective in managing chronic disease. Patient care will be further bolstered by the fact that the staff speak 20 languages to be reflective of the surrounding community.
Capital Impact Partners employs an investment and social impact strategy that allows them to partner with community health 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 health care. In its 30-year history, Capital Impact Partners has financed more than 50 percent of California Federally Qualified Health Centers (FQHC). With more than $250 million in loans, the organization is the state's largest nonprofit health care lender.
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