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 (Program) was established through the approval of urgency legislation, Chapter 6, Statutes of 2023 (Assembly Bill 112). The Department of Health Care Access and Information (HCAI) and the California Health Facilities Financing Authority (CHFFA) will jointly implement the new Program to make interest-free loans for working capital needs.
Program Eligibility:
Must be a not-for-profit hospital or public hospital in significant financial distress; OR must be a governmental entity representing a closed hospital, except as otherwise provided, to prevent hospital closure or facilitate the reopening of these hospitals.
Please Note: Not-for-profit hospitals and public hospitals that belong to integrated health care systems with more than two separately licensed hospital facilities are ineligible for loans under this Program.
Loan Terms:
- $150 million available in one-time funding
- Zero percent (0%) interest rate loans
- Loan term is repayable over 72-months, with an initial 18-month payment deferment period at the beginning of the loan term
- Loan Security: 20% of Hospital’s Medi-Cal checkwrite payments
Application Period Closed
The application period closed on July 31, 2023, and we are no longer accepting applications for the Distressed Hospital Loan Program. To view a full list of approved applicants and amounts awarded, please visit Press Release and Loan Awards on HCAI's website.