Health Center Facility Loan Guarantee Program

The Health Resources and Services Administration (HRSA) Health Center Facility Loan Guarantee Program (LGP) supports loans to eligible Health Center Program awardees for the construction/expansion, alteration/renovation and modernization of health center medical facilities. Eligible health centers must be active Health Center Program awardees, as defined under section 330 of the Public Health Services Act.

The purpose of the HRSA LGP is to facilitate access to capital funding and reduce financing costs for health centers by guaranteeing up to 80 percent of financing needed to support capital infrastructure projects. While there is no limit on loan size, the HRSA LGP has typically guaranteed loans for projects of $5 - $7 million or more. After approving a loan guarantee, HRSA monitors the loan repayment status and assesses the operational/financial viability of the health center during the life of the loan.

HRSA LGP applications are accepted year-round. Interested health centers should contact the HRSA Loan Guarantee Program at LGProgram@hrsa.gov and provide the following information:

Health center name and H80 Award Number
Anticipated Project Scope:
Type of construction activity (i.e., new construction, renovation, new site, replacement facility);
Total project cost;
Financing needs and potential lender(s); and
Timeline and status of project planning and financing.
HRSA will follow-up with interested health centers to identify the specific items that will be needed in the formal application submission.

Updates to the HRSA LGP application instructions and review processes are underway. Updated guidance materials are anticipated to be available in Spring 2019.

Date Last Reviewed:  November 2018