NOTIFICATION OF LENDER ELIGIBILITY FOR PARTICIPATION IN A LOAN GUARANTEE POOL Congress has authorized the Secretary of Health and Human Services to guarantee loans made by non-Federal Lenders for health centers funded under Section 330 of the Public Health Service Act (PHS) Act. These health centers, which are community controlled private nonprofit or public entities, provide primary health care services for medically underserved populations. The approximately 700 organizations that receive Section 330 funding are located in urban and rural communities throughout the Nation. The authorized guaranteed loans will be administered through two different loan guarantee programs to enable Federal grantees to recieve up to $160 million of total loan principal for health center facilities and managed care networks and plans controlled and owned by health centers. Under the two Health Center Loan Guarantee Programs, a loan guarantee pool is being established, with participation open to eligible non-Federal Lenders. The Loan Guarantee Program for Health Center Facility Projects, authorizedby Title XVI, Part A, 42 U.S.C. 300(q) et. seq. 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 defined and funded under Section 330 of the PHS Act. The Loan Guarantee Program for Health Center Managed Care Networks and Plans, authorized by Section 330(d) of the PHS Act, 42 U.S.C. 254b(d), will guarantee up to 90 percent of the loan principal amount for health centers to develop, operate, and own networks and up to 85 percent for health centers to develop, operate, and own health plans. The two loan guarantee programs (referred to collectively as the "Program") will be administered by the Bureau of Primary HEalth Care (BPHC) in the Health Resources and Services Administration (HRSA). Non-Federal Lenders are being sought to participate in the pool of Lenders for the Program. This notice provides interested parties the opportunity to gather information regarding eligibilitycriteria for participating as a non-Federal Lender in the loan guarantee pool. A Lender must: (a) Be regulated by and in good standing with a Federal financial regulatory agency, or furnish satisfactory evidence of adequate financial and capital condition, the adequacy of which shall be determined at HRSA's sole discretion; (b) Not be currently debarred or suspended from participation in any United States Government contract or delinquent on a debt owed to the United States Government or any agency or instrumentality thereof; (c) Be able to obtain fidelity/surety bonding and/or errors and ommissions insurance with the Federal Government as a loss payee at HRSA's sole discretion; (d) Provide, if so requested, qualifications of principal officers and staff of the Lender who will be or are responsible for the administration of the Loan(s) under the Program; (e) Proivde, if the Lender has one or more loans guaranteed under the Program, proof of acceptable performance as a Lender, which shall include for each andevery loan, adherence to all the terms and conditions as set forth in the agreement between HRSA and the Lender; (f) Be able to demonstrate, at HRSA's sole discretion, the capacity to hold and account for loan documents, receive all payments of principal and interest, and otherwise service and administer the loan in a manner consistent with accepted standards of loan servicing employed by prudent lenders generally. A Lenders eligibility for participation in additional loans under the Program will be reviewed at least every two years in accordance with monitoring and evaluation procedures. For further information contact Marie Legaspi or Joe Fitzmaurice, Division of Community and Migrant Health, BPHC, (301) 594-4300. Posted 01/05/00 (W-SN413161).

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