West Virginia Rural Health Infrastructure Loan Fund
The Center For Rural Health Development's Rural Health Infrastructure Loan Fund helps finance health care providers’ capital equipment and facilities projects in West Virginia.
The Loan Fund is a prime example of how a small amount of state funding can be matched with private and community dollars to bolster the economies of rural communities. For every $1 the state invested in the Loan Fund, an additional $8, on average, was raised from other sources to support West Virginia’s rural health infrastructure.
The initial funding came from the Robert Wood Johnson Foundation, the Claude Worthington Benedum Foundation, the state of West Virginia and the United States Department of Agriculture. The Loan Fund is an intermediary re-lender for the USDA.
To learn more about the loan fund, click on a topic below.
How Can the Loan Funds Be Used?
What is the Role of Banks and/or Other Financial Institutions in the Lending Process?
What is the Loan Fund’s Maximum Participation in a Project?
What is the Smallest Size Loan the Center will consider Funding?
How is the Availability and Priority of Funding To Providers Determined?
What is the Funding Source for the Loan Fund?
What is the Application Process and How Long Does It Take?
How Do We Apply for a Loan or Find Out More About the Loan Fund?
Rural health care providers located in West Virginia's 55 counties can qualify, whether they are for-profit or not-for-profit. Qualified providers must be duly licensed provider organizations or practitioners actively engaged or planning to be actively engaged in providing health care services in West Virginia. The loan fund program committee ultimately judges a project to be eligible or not eligible for funding.
How Can the Loan Funds Be Used?
Proceeds of loans obtained through the Loan Fund currently can be used for capital projects including equipment and facilities. Loan funds can also be used for refinancing and/or restructuring existing capital-related loans.
Rates are aggressive to the conventional markets. Rates are based on market conditions. Rate programs are periodically established at the discretion of the Fund, and credit and risk factors associated with individual loans. Not-for-profit providers can secure rates below prime and for-profit providers can secure rates as low as prime. Fixed and variable rate programs are available.
What is the Role of Banks and/or Other Financial Institutions in the Lending Process?
The Loan Fund participates in partnership with local community banks and/or other lead lenders in financing projects for health care providers in West Virginia. The Loan Fund’s potential participation in a project financing is determined directly through contacting Loan Fund staff.
What is the Loan Fund’s Maximum Participation in a Project?
The Loan Funds maximum participation in funding a rural health care provider's need is currently 50% of a project’s funding, not to exceed $350,000. The total project size is unlimited.
What is the Smallest Size Loan the Center will consider Funding?
The Loan Fund will consider funding a total minimum size loan package between $50,000 to $65,000 with the Loan Fund’s participation as small as $25,000. A micro-loan program is under development to address smaller loans.
How is the Availability and Priority of Funding To Providers Determined?
Given qualified loans, priority and availability of funding is determined on a first come first serve basis for qualified projects.
What is the Funding Source for the Loan Fund?
Funding for the Program has been secured through a public-private partnership that to date includes: The Robert Wood Johnson Foundation, The Claude Worthington Benedum Foundation, The State of West Virginia, The United States Department of Agriculture (USDA), The West Virginia Health Care Authority, and The West Virginia Department of Health and Human Resources.
FUTURE FUNDING: The Loan Fund is actively seeking charitable and philanthropic donations toward reaching its goal of a $15 million capital pool. In a revolving loan fund of this nature, credit to the donors for their contributions is extended for the life of the Loan Fund. If you would like to support rural health care providers through the Loan Fund with a charitable contribution, click here.
What is the Application Process and How Long Does It Take?
The application process involves a short Preliminary Application that is reviewed by the Program Committee. Turn around time is 7-10 working days. To download a Preliminary application, click here.
Note: Adobe Acrobat reader is required to view and print this document. If you do not have Acrobat Reader, click here to download it from the Adobe website.
Once the Program Committee approves the Preliminary Application, an applicant is invited to make a formal application to the Loan Committee. Turn around time by Loan Fund Staff and the Committee can be accomplished within 2-3 weeks once the information is received. To download the Loan Application, click here. It is the Loan Fund’s objective to process a loan from initial application to approval within 3 - 4 weeks if desired by the applicant. Time largely depends on the quality, completeness, accuracy and organization of information provided by the applicant.
How Do We Apply for a Loan or Find Out More About the Loan Fund?
To download an application, click here. Adobe Acrobat Reader is required. If you do not have Reader, download it free from www.adobe.com or click the Adobe icon: 
Click here to request more information, or:
Call: 304.766.1591
Fax: 304.766.1597
Email: angela.hutchinson@wvruralhealth.org
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