Low-Interest Loan Pool for Safety-Net Clinics Expands to $26 Million
On Tuesday, the California HealthCare Foundation announced that it will contribute $10 million to California's Emergency Working Capital Loan Fund, which provides low-interest loans to support community health clinics that would be affected by state budget cuts, the San Francisco Business Times reports.
CHCF is the publisher of California Healthline.
The loans are designed to help the clinics maintain services if the state delays or reduces reimbursements for Medi-Cal, California's Medicaid program.
The Medi-Cal payments could be in jeopardy if state lawmakers fail to approve a budget plan in the coming weeks.
CHCF offered similar loan support during last year's budget impasse.
With the contribution from CHCF, the fund now totals $26 million.
Eligible clinics can receive a maximum loan of $1.5 million. In addition, the larger loan pool brings interest rates down to 3.6%, officials said.
Other donors include:
- California Primary Care Association Loan Fund;
- Catholic Healthcare West;
- Mercy Housing Partnership;
- The Nonprofit Finance Fund;
- NCB Capital Impact, which also is administering the loans; and
- Sutter Health (Rauber, San Francisco Business Times, 6/30).