HEALTH CENTER LOAN GUARANTEE PROGRAM Health Center Loan Guarantee Programs Congress has appropriated funds that will remain available until expended for Federal guarantees of loans made by non-Federal lenders for health centers funded under Section 330 of the Public Health Service (PHS) Act. These health centers, which are community-controlled non-profit or public entities, provide primary health care services for medically underserved populations. The approximately 650 organizations that receive Section 330 funding are located in urban and rural communities throughout the nation. The appropriated funds will be administered under two different loan guarantee programs to enable Federal guarantees of $ 80 million of total loan principal for health center facilities, managed care networks and health plans. The Loan Guarantee Program for Health Center Facility Projects, authorized by part A of Title XVI of the PHS Act, will guarantee up to 80 percent of the loan amount for the construction, renovation and modernization of medical facilities that are owned and operated by health centers. The Loan Guarantee Program for Health Center Managed Care Networks and Plans, authorized by Section 330(d) of the PHS Act, will guarantee up to 90 percent of the loan amount for health centers to develop, operate and own managed care networks and up to 85 percent of the loan amount for health centers to develop, operate and own health plans. The two loan guarantee programs will be administered by the Bureau of Primary Health Care (BPHC) in the Health Resources and Services Administration of the Department of Health and Human Services. The BPHC is in the process of completing the overall design, guidelines, and application materials for implementation of the programs. The BPHC plans to negotiate with the National Cooperative Bank to be a major source of non-Federal loans and a part of a contemplated pool of lenders, and to serve as the Lender Coordinator for both loan guarantee programs. It is anticipated that the Lender Coordinator will be responsible for establishing underwriting criteria for the loans, developing standard loan documents for submission to the Loan Guarantee Committee, developing standard formats for reporting loan performances, and maintainence of a database of reported information including regular updates regarding individual loan guarantee recipients and overall performance of the loan guarantee programs as stipulated by the BPHC. The BPHC is seeking other non-Federal lenders, in addition to the National Co-Op Bank, to be a part of the pool of lenders for both of the loan guarantee programs. Several other lenders have expressed interest to the BPHC. For further information contact: Individual: Richard C. Bohrer Director, Division of Community and Migrant Health Bureau of Primary Health Care Health Resources and Services Administration 4350 East West Highway 7th Floor Bethesda, Maryland 20814 Telephone: (301) 594-4300 E:mail address: rbohrer@hrsa.dhhs.gov

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