PCDC provides a broad range of long-term and short-term loan products that can be used for new construction, pre-construction and property acquisition, facility renovation, facility design, facility development, and equipment purchases and upgrades.
Eligibility: Eligible borrowers are Not-for-profit Article 28-licensed Diagnostic & Treatment Center (DTC) and hospitals serving underserved communities in New York State. Loan approvals are subject to PCDC underwriting and evaluation of the proposed project and financial strength of the borrower.
Through its New Markets Loan Fund and a unique relationship with HSBC Bank, PCDC offers a permanent loan product at below-market interest rates for health center projects in qualified census tracts. The loan size may range from $2.5 million to $7 million. This loan product is specially designed with a term of up to 25 years with a fixed interest rate that eliminates the refinancing risk at year 7 at unknown interest rates that are typical of other New Markets Tax Credit programs.
Amount: Greater than $6 million, can cover 100% of project costs
Terms: Up to 28 years; Tax- exempt interest rate varies with market conditions. Current rates are approximately 4%.
For health care facilities located in New York City only, this program provides construction and permanent financing, typically in excess of $6 million per project, through tax-exempt bonds issued by the Dormitory Authority of the State of New York. The bonds are backed by the City of New York and PCDC. The financing terms are up to 28 years. (Up to 5% of each bond issue may be used for working capital and operating start-up costs.
Primary Care Capital Fund (PCCF):
Amount: Up to $6 million
Terms: Varies depending on project.
The PCCF provides permanent financing of up to $6 million per project for qualifying health centers and health care providers statewide. The fund is available through a partnership with leading financial institutions that currently include JP Morgan Chase, Citibank, HSBC Bank, and Bank of America. Construction financing can be arranged through one of the banking partners. (Up to 6% may be used for working capital and operating start-up costs).
Short Term Loans
Target Loan Fund:
Amount: $30,000 - $250,000
Terms: Up to 5 years; below market interest rates.
Borrowers seeking a short-term loan between $30,000 and $250,000 should consider a Target Loan, which provides financing for small-scale facilities expansions or equipment acquisitions for qualifying health centers.
Amount: average between $200,000 and $800,000
Terms: up to 3 years; below market interest rates.
The Pre-Development Loan Program provides early capital to facilitate project development, including fees for professional services such as architectural or financing and site acquisition, financial feasibility analysis, and regulatory approval.
Amount & Terms: Both amount and terms are flexible to accommodate anticipated cash flow from a government grant.
PCDC provides bridge financing to facilitate the development process for borrowers facing specific funding hurdles, such as the need to use cash not yet available via committed government grants. The loan term is flexible and dependent on borrower needs.