Providing funds to assist with efforts to improve healthcare infrastructure.
Providing technical assistance and resources to assist loan Applicants in preparing business plans, pro forma financial statements and facilitate referrals.
Providing compensating deposits to help reduce interest rates on conventional loans.
Providing linkages with Financial Institution, City Governments, Healthcare Providers, and Community based organizations.
Southeast Louisiana AHEC receives in excess of $837,000 to support revolving loan fund
The Robert Wood Johnson Foundation (RWJ), the Louisiana Public Facilities Authority (LPFA) and the Louisiana Department of Health and Hospitals (DHH) collectively awarded more than $837,000 in grants and an interest free loan to the Southeast Louisiana Area Health Education Center Foundation, Inc. (SELAHEC) to support its’ Louisiana Rural Loan Fund.
Two loan recipients, Tina Monlezun, CRNP, a nurse practitioner at Lake Arthur Health Clinic, and Linda Sharpless, RN, owner of JD Kid Kare Multi Practice Clinic, both shared their personal stories of how their loans have enabled them to improve access and service to their patients.
The Louisiana Rural Loan Fund, a required component of the Louisiana Rural Health Access Program, is a joint project of the Louisiana State University Health Science Center – New Orleans and DHH. Administered by SELAHEC, the fund was created in 1999 with a $500,000, 10-year no interest loan from LPFA and a $99,990 grant from the USDA’s Rural Business Enterprise Program.
The $500,000 RWJ grant and an additional $300,000 LPFA 10-year interest free loan add much needed capital to provide direct and subordinated loans to help improve access to primary healthcare in rural Louisiana communities. The $37,248 grant awarded on behalf of the DHH Community-Based and expedite loan request processing. Grant monies also will be used to provide technical assistance, advice and financial underwriting support. A part-time loan specialist will also be recruited to support loan requests in the central and northern Louisiana parishes.
In addition to assisting health care providers, the Rural Loan Fund should help improve the economic stability of rural Louisiana communities.
Both non-profit and for-profit healthcare providers will be eligible for loans. Loan amounts can range from $10,000 to $500,000 and can be used for start-up costs, equipment, renovations, new construction, working capital and refinancing of existing loans. “There are areas in our state where no primary care facilities exist and patients are driving miles to see a doctor, physician assistant, nurse practitioner or other health professional,” said Brian Jakes, CEO- SELAHEC.
Since its inception, the Rural Loan Fund has reviewed or provided technical assistance for $37 million in direct or subordinated loans. With the new funding provided by RWIF, LPFA, and DHH it is estimated that $6 million in new loans will be developed to improve access to primary healthcare in rural Louisiana.