Distressed Hospital Loan Program

Purpose: It is intended to offer interest-free cashflow loans to not-for-profit and public hospitals in significant financial distress or to governmental entities representing a closed hospital to prevent the closure of or facilitate the reopening of the hospital. Chapter 6, Statutes of 2023, (AB 112) established the Distressed Hospital Loan Program authorizing $150 million in one-time funding towards not-for profit and public hospitals in significant financial distress or to governmental entities representing a closed hospital to either prevent the closure or facilitate the reopening of closed hospitals. The Program offers zero-percent interest, 72-month term loans, with an initial 18-month payment deferment at the start of the loan, for the purpose of supporting cashflow needs, and potentially may be forgiven or modified, with terms to be determined at a future date. If the loan were to default, up to 20% of the hospitals Medi-Cal checkwrite payments would be intercepted by CHFFA. Complete Application online. A link to the online application is located on the Distressed Hospital Loan Programs page of CHFFA’s website. Eligible Applicants: Eligible hospitals cannot belong to an integrated health care system with more than two separately licensed hospital facilities. Eligible Geographies: none Matching Funding: none

• PSCHealth & Human Services

• dhlp.asp

  57 KB
  Download

• C
  chffa@treasurer.ca.gov