SoCal hospitals impacted by wildfires can tap low-interest loan fund

The California state treasurer has launched a loan fund to aid health facilities affected by the Los Angeles-area wildfires.

The $2 million loan fund will be administered by the California Health Facilities Financing Authority (CHFFA), which Treasurer Fiona Ma chairs.

Established in 1979, CHFFA provides financial assistance to healthcare providers in California through bonds, loans, and grants.

"The 2025 Emergency Wildfire Help Loan Program underscores CHFFA's commitment to ensuring that health facilities impacted by these devastating fires have the resources they need to continue serving their communities," Ma said.

The program's aim is to help eligible health facilities recover and rebuild, reflecting the state's "dedication to supporting health care access, particularly in times of crisis," Ma said.

Also at its Thursday meeting, CHFFA announced the next round of funding from the $300 million program to aid all fiscally distressed not-for-profit and public hospitals in the state. Funding for that program was created by lawmakers in 2023. The program allocated funding from the zero-interest loan program to 17 hospitals in September 2023.

"This program reflects our dedication to supporting health care access, particularly in times of crisis," Ma said.

The new program draws its funding from the Healthcare Expansion Loan Program (HELP II), offering low-cost loans to impacted facilities to ensure the continued delivery of essential health care services to their communities.

It offers zero-percent fixed interest rates, offers a maximum loan amount of $500,000 per borrower and loan maturities of up to 20 years for property acquisition, construction, remodeling, or renovation; up to 5 years for equipment and furnishings.

The eligibility requirements are that property acquisition be in the same service area. And it covers the cost of construction, remodeling, renovation, and improvements and equipment and furnishings.

The facilities must be located in Los Angeles, Ventura, or San Bernardino counties and have been impacted by the recent Los Angeles area fires. They also must be non-profit 501(c)(3) organizations or public health facilities, with gross annual revenues under $40 million (no revenue limit for rural health facilities or district hospitals).

The borrowers must demonstrate fiscal soundness, provide sufficient collateral, and submit documentation of wildfire impact and intended use of funds.

Interested health facilities must provide documentation, including evidence of wildfire impact, audited financial statements, and board resolutions approving loan applications. Loans must close within six months of approval.