State Treasurer Fiona Ma issued the following statement on Aug. 24 regarding the Distressed Hospital Loan Program (DHLP), jointly run by the California Health Facilities Financing Authority (CHFFA) and Department of Healthcare Access and Information (HCAI):
“California’s network of hospitals plays a vital role in providing access to emergency services and acute care. In some parts of the state, they may be the only source of healthcare. The hospitals approved for this program have shown a detailed plan for financial recovery and these funds will help them keep the doors open so they can keep serving their communities. My team stands ready to begin disbursing loan funds in the coming weeks and has already begun reaching out to provide instructions and assistance.”
CHFFA, an arm of the State Treasurer’s Office and chaired by Ma as state treasurer, has a long and successful history of administering loans to hospitals and other healthcare facilities. Their HELP II loan program provides low-interest rate loans to California’s nonprofit small or rural health facilities to purchase or construct new facilities, remodel or renovate existing facilities, and purchase equipment or furnishings, among other uses.
Since 1995, CHFFA has issued 292 loans, totaling $131.8 million, to 188 health facilities. To date, they maintain a 0 percent default rate.
With the announcement of approved DHLP applicants, the State Treasurer’s Office and CHFFA outlined next steps in the program, including the disbursement of loan funds.
Next steps:
HCAI to send CHFFA list of approved Distressed Hospital Loan Program (DHLP) applicants.
CHFFA to send formal approval letters to all DHLP approved borrowers, along with detailed instructions and required documents.
Borrowers to complete and return to CHFFA executed loan documents to begin loan disbursement process. (time dependent on borrowers)
Upon receipt of required loan documents, CHFFA will begin loan disbursement process.
Loan proceeds disbursed.
CHFFA to provide loan servicing and ongoing assistance to borrowers.
For more information, visit CHFFA’s DHLP website.
Fiona Ma is California’s 34th State Treasurer. She was first elected on Nov. 6, 2018 and reelected on Nov. 8, 2022. She is the first woman of color and the first woman Certified Public Accountant (CPA) elected to the position. The State Treasurer’s Office was created in the California Constitution in 1849. It provides financing for schools, roads, housing, recycling and waste management, hospitals, public facilities, and other crucial infrastructure projects that better the lives of residents.
