Distressed Hospital Loan Program
Provides relief with interest-free loans to California’s not-for-profit and public hospitals experiencing financial distress or at risk of closure
Program Description
On May 15, 2023, the Distressed Hospital Loan Program (DHLP) was established through the approval of urgency legislation, Chapter 6, Statutes of 2023 (Assembly Bill 112), authorizing $150,000,000 from the General Fund. Subsequently, on July 10, 2023, Assembly Bill 118 (Chapter 42, Statutes of 2023) was signed into law, increasing the amount of funds available for DHLP to $300,000,000. DHLP was designed to support nonprofit and public hospitals in significant financial distress, or governmental entities representing a closed hospital to either prevent the closure or facilitate the reopening of closed hospitals. The Department of Health Care Access and Information (HCAI) and the California Health Facilities Financing Authority (CHFFA) jointly implemented the program to make interest-free loans for working capital needs. A total of $300 million in one-time funding was authorized for DHLP, with $7.5 million reserved for administrative costs. To date, 16 loans have been awarded, totaling $292.5 million.
The DHLP application period is closed, and we are no longer accepting applications.
Loan Modification for Existing Borrowers:
Step 1: 12-Month Extension of the Loan Payment Deferral Period and Maturity Date - OPEN
Step 2: 12-Month Debt Service Forgiveness – CURRENTLY UNAVAILABLE
| DHLP Loan Modification Application | |
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CHFFA and HCAI will begin accepting applications on February 3, 2025. 
Application(in fillable PDF) |
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Submission Instructions:
An applicant must submit an application at least 90 days, but no more than 120 days, before a loan modification is needed.
An applicant must submit a complete application to CHFFA by email with a Portable Document Format (PDF) attachment of the application to the following email address: chffa@treasurer.ca.gov
If additional documents and pages are needed to respond to the requirements of the application, the pages must be included with the application at the time of submission and subject to the same deadlines.
Please Note:- CHFFA is not responsible for email transmittal delays or failures of any kind.
- All information and documentation submitted as part of the application package is subject to the Public Records Act.
- HCAI and CHFFA reserve the right to request additional information in review of the application and the determination of eligibility.