SACRAMENTO, California. and ARLINGTON, Virginia., October 8, 2020 / PRNewswire / – California Community health centers (CHCs) are facing significant revenue losses due to business disruptions due to the COVID-19 pandemic. At the same time, CHCs incur unforeseen costs to implement virtual health consultation technology. The impacts of the pandemic have been further exacerbated for many CHCs by the forest fires ravaging the state.
To close this cash gap, the California Primary Care Association (CPCA) and Capital impact partners launched the $ 25 million ACIPR COVID Intervention Loan Fund provide flexible funding to CHCs. Investors in the fund include Alliance Healthcare Foundation, The California Endowment, The California Wellness Foundation, JPMorgan Chase, Richard W. Goldman Family Foundation and UnitedHealth Group.
This is a vital need, as CHCs serve not only one in six Californians, but also a predominant number of patients who fall below the federal poverty line. California CHCs provide culturally competent care to the state’s most diverse communities and serve one in three Medi-Cal recipients. These residents are also largely affected by the health and financial effects of the pandemic.
Applications will be accepted via November 6, 2020. Eligible organizations (see below) interested in applying for a loan can access the application here. Further details can be found through our webinar and FAQs found online here.
“Our more than 1,370 nonprofit members operate on very thin margins, often relying on the support of a federal program based on patient visits. At the start of the COVID-19 pandemic, patient visits dropped sharply and still have not returned to pre-COVID levels. This has a huge impact on their financial stability and their ability to keep their doors open to serve their communities. CPCA’s COVID Response Loan Fund is an essential interim measure to avoid unnecessary shutdowns of their operations, ”said CPCA President and CEO. Carmela Castellano-Garcia.
Since the start of the COVID-19 pandemic, CHCs have seen primary and preventive care visits drop by more than 50%, resulting in temporary site closures, as well as layoffs and staff closures. CHCs are using already tight budgets to test and treat COVID-19 patients, purchase personal protective equipment for staff, and implement new technological solutions. In a recent survey of CPCA members, 70 percent indicated the need to explore how to create and deploy an emergency cash fund that they could access.
“The global pandemic has amplified the lack of a safety net for our most vulnerable populations, particularly black and Latin communities,” said the president and CEO of Capital Impact Partners. Ellis Carr. “Community health centers are often the only places where uninsured and underinsured patients can access equitable health care. If they have to shut down or scale back services as a result of this crisis, millions of people will be seriously affected. We simply cannot let this happen.
Main characteristics of the ACIPR COVID Intervention Loan Fund managed by Capital Impact:
- Loans $ 250,000 until $ 1.5 million
- 3% interest rate
- No payment the first year, then full amortization over 6 years
- The loan will be secured by a general lien on all assets. No real estate guarantee required
- Each borrower will automatically receive a grant for technical assistance and expenses related to COVID
- No fees associated with closing the loan
- Prohibited uses:
- Development of new facilities
- Renovations of non-patient service facilities in response to COVID-19
- Refinancing of existing debt
Eligible uses include any working capital requirement resulting from the COVID-19 pandemic. Uses include, but are not limited to:
- Lack of operating income
- Telemedicine infrastructure
- COVID-19 investment and operating costs
- Minor renovations to support better COVID-19 care
- Non-profit 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, FQHC, FQHC-Look-Alikes, Rural Health Clinics, Indian Health Clinics, Free Clinics, etc.
- Non-profit consortia with a majority of members made up of the non-profit health centers described above
- Health centers located on land recognized by United States government as tribal land in California and operated by an Indian tribe recognized by United States government
Applicant organizations must also be in business for at least three years and demonstrate a negative operational impact resulting from the COVID-19 pandemic.
Loan decisions will be made at the end of November and loan funding is scheduled for mid-December.
ACIPR and the impact on capital: long-time advocates of CSCs
This is not the first time that Capital Impact and CPCA have teamed up to meet the needs of CHCs in times of uncertainty. During California The 2008 budget crisis, which resulted in delays in payments from Medi-Cal, Capital Impact and CPCA stepped in with a similar fund to help these establishments meet cash flow needs. In total, this fund has supported 52 clinics with $ 40 million in financing.
In addition, Capital Impact and CPCA managed the CPCA Business Loan Fund since 1998. This low-cost funding resource has been put in place to support health centers in need of construction, equipment and working capital funding.
Quotes from investors:
“The legacy of structural racism has put California Black and Latino communities are directly at risk during this pandemic, resulting in their unequal and unfair burden of illness and death from COVID-19, ”said Robert K. Ross, MD, President and CEO of The California Endowment. “We congratulate the CPCA and Capital Impact Partners for their leadership which brought us all together to support community health centers and vulnerable people. California communities they serve.
“California most underserved communities are exposed to lasting health and economic consequences due to crises such as the coronavirus pandemic and the unprecedented destruction of forest fires, ”said Allen Fernandez Smith, JPMorgan Chase Philanthropy Manager for the Western Region. “We know how essential it is to have a healthy and prosperous community and everyone in the state should have access to quality front-line health care. It starts by ensuring that community health centers have the resources they need to serve California most vulnerable residents. “
About the California Primary Care Association
The California Primary Care Association (CPCA) represents more than 1,370 nonprofit community health centers that care for more than 7.2 million patients each year. Community Health Centers (CHCs) are committed to providing comprehensive, high-quality health care to everyone who walks through our doors, with compassion and cultural sensitivity. CHCs include Federally Qualified Health Centers (FQHC) and FQHC look-alikes, community clinics, free clinics, rural health clinics, migrant health centers, Indian health service clinics, and clinics family planning. Services include comprehensive primary and preventive care, women’s health, dental care, mental health, addiction treatment, health education, awareness and registration, pharmacy and more.
About Capital Impact Partners
Through capital and engagement, Capital Impact Partners helps people create communities of opportunity that break down barriers to success. Through mission-based funding, social innovation programs, capacity building and impact investing, we strive to advocate for key issues of social and economic equity and justice. Our commitment to the community aims to ensure that individuals have access to quality health care and education, healthy food, affordable housing, cooperative development and the ability to age with dignity.
Non-profit community development financial institution, Capital Impact has disbursed more than $ 2.5 billion since 1982. Our leadership in financial and social impact has enabled Capital Impact to be rated by S&P Global and recognized by Aeris for our performance. Based at Arlington, Virginia, Capital Impact Partners operates nationwide, with local offices in Austin, Texas, Detroit, Michigan, New York, New York State, and Oakland, California. Learn more about www.capitalimpact.organization.
About the California Endowment
The California Endowment, a state-wide private health foundation, was established in 1996 to expand access to quality health care for underserved individuals and communities, and to promote fundamental improvements and affordable to the health of all Californians. The Endowment Fund challenges the misconception that medical institutions and individual choices are solely responsible for people’s health. Basically, The Endowment believes that health happens in neighborhoods, schools and with prevention. Learn more about www.calendow.org.
SOURCE Capital Impact Partners