Tax-Exempt Equipment Financing Program – CHFFA

This program will provide a borrower with access to tax-exempt, fixed-rate financing for equipment purchases. Eligibility General Requirements -Must be a health facility as defined in the Authority's Act (Section 15432(d) of the California Government Code) -Must be a non-profit 501(c)(3) corporation or public health facility (e.g., district hospital) as defined in the Authority's act (Section 15432(e) of the California Government Code) -Must have been in existence for at least three years, providing the same types of services -Must demonstrate evidence of fiscal soundness and the ability to meet the terms of the proposed loan Use of Funds Funds may be used for: -The purchase or reimbursement of all types of qualifying equipment by an eligible health facility -The financing of minor equipment installation costs Loan Terms -Market determined fixed interest rate, depending on maturity -The maturity of the loan must relate to the useful life of the equipment to be financed -Loan minimum of $500,000, no maximum loan amount Fees -$500 non-refundable application fee -Initial fee of 0.05% of the issue amount -Annual administrative fee of $400, as long as there is an outstanding loan balance Required Documentation -Three most recent fiscal years of audited financial statements