Successfully Serving California Community Health Centers

Through this program, Capital Impact closed 13 flexible, working capital loans totaling nearly $12 million to help California community health centers (CHCs) recover from and respond to the COVID-19 pandemic. Combined, these CHCs operate 127 clinical sites serving 329,051 patients and employ 3,327 full-time equivalent staff. They represent both coastal and inland counties across the state, and 67% are led by people of color. While the Fund is now closed, we are closely monitoring the COVID-19 situation and are prepared to continue our support to ensure all Californians have equitable access to health care.

Flexible Capital to support California's Community Health Centers

Throughout 2020, California’s community health centers (CHCs) faced the COVID-19 pandemic, providing care to their communities despite the difficult circumstances. As a result of business disruptions and reduced client visits, they also experienced significant lost revenue, which could reduce their ability to continue providing quality care. Now in 2021, clinics are faced with new costs and challenges related to vaccination efforts. We are here to help.

To bridge this gap, the California Primary Care Association (CPCA) and Capital Impact Partners are providing flexible financing to California CHCs through the CPCA COVID Response Loan Fund.

Key features of the CPCA COVID Response Loan Fund:

  • Loans from $250,000 up to $1.5 million
  • 3% interest rate
  • No payments until February 1st, 2022, then fully amortizing over 6 years
  • Loan will be secured by a general all asset lien. No real estate collateral required
  • Each borrower will automatically receive a grant for technical assistance and COVID-19 related expenses
  • No fees associated with loan closing
  • No prepayment penalty
  • Prohibited Uses:
    • Retirement of debt, including other Capital Impact Partners and CPCA Ventures-related debt
    • Development of new permanent sites
    • Renovations or improvements unrelated to COVID-19 pandemic response

Eligible uses include any working capital need resulting from the COVID-19 pandemic. Uses include but are not limited to:

  • Operating revenue shortfalls or temporary increases in expenses including temporary staff
  • Renovations for social distancing, testing and vaccinations, and other COVID related needs
  • Telemedicine infrastructure
  • Critical system upgrades to support uninterrupted care including, HVAC, IT Systems, and power supply
  • Temporary or mobile clinic space related to COVID testing, treatment, and vaccination

*If you have a use case question, please don’t hesitate to contact us.

Eligible Organizations:

  • Nonprofit health centers – including non-CPCA members – licensed in the state of California under Section 1204 of the California Health and Safety Code are eligible and encouraged to apply. These organizations include but are not limited to, FQHCs, FQHC-Look-Alikes, rural health clinics, Indian Health Clinics, free clinics, etc.
  • Nonprofit consortiums with a majority membership comprised of the nonprofit health centers described above
  • Health centers located on land recognized by the United States government as tribal land in California and operated by an Indian tribe recognized by the United States government

Applying organizations must also have been in operation for a minimum of three years and demonstrate negative operational impact resulting from the COVID-19 pandemic.

A Vital Need
It is a vital need, as CHCs not only serve one-in-six Californians, but also a predominate number of patients who fall below the federal poverty level.  California CHCs provide culturally competent care to the state’s most diverse communities, and serve one in every three Medi-Cal recipients. These residents are also largely impacted by both the health and financial effects of the pandemic. Learn more about our mission-driven health care and lending work.

Fund Partners

The CPCA COVID Response Loan Fund is made possible through the generous support of several key partners.

  • Alliance Healthcare Foundation
  • The California Endowment
  • California Primary Care Association
  • The California Wellness Foundation
  • JPMorgan Chase
  • Richard W. Goldman Family Foundation
  • UnitedHealth Group
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Our 1,300+ nonprofit members operate on razor-thin budgets, often relying on federal program support based on patient visits. Even as our dedicated staff stand at the front lines of the Coronavirus the number of visits qualifying for payments has plummeted, putting CHC’s across the state in financial jeopardy. The CPCA COVID Response Loan Fund is a critical stopgap measure to prevent unnecessary closures of their operations.

Carmela Castellano-Garcia
CPCA President & CEO


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