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National Cooperative Bank. Chartered by Act of Congress, 1978Offices in DC, New York, OaklandBorrowers to be:Consumer cooperatives?Cooperative-like" nonprofit organizations35% of loans to benefit low-income populations. NCB Development Corporation. Mission:To provide solutions, based on cooper
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1. Funding Community Health Care Clinics Federal Reserve Bank of San Francisco
October 2003
Scott Sporte
2. National Cooperative Bank Chartered by Act of Congress, 1978
Offices in DC, New York, Oakland
Borrowers to be:
Consumer cooperatives
“Cooperative-like” nonprofit organizations
35% of loans to benefit low-income populations
3. NCB Development Corporation Mission:
To provide solutions, based on cooperative principles, that empower under-served communities to address the problems that poverty creates in America.
4. NCB Development Corporation Affordable Housing
Assisted Living & Housing with Services
Education / Charter Schools
Community Development Corporations
Worker Owned Businesses
Health Care
5. Community Health Care Borrowing organizations provide prenatal through senior care to a predominantly low-income population
Community health centers
Substance abuse rehab
Adult day health centers
Affordable assisted living
6. Health Care Lending Over $150 million to community-based health care providers since 1985
Current portfolio $60 million in 13 states, approx. 60% in California
Historic losses <0.1%
Average health care delinquency 0.57% at year end
7. Health Care Lending Direct loans for facilities construction, expansion and renovation; equipment and working capital
Loans sized $100,000 - $5,000,000 +
Fixed or floating rates priced at or below market rates
Transactions on and off balance sheet
8. Partners & Programs California programs
CPCA Revolving Loan Program
HealthCAP Loan Program
Rural Development Community Facilities programs
HRSA Facilities Loan Guarantee Program
New Markets Tax Credit program
Secondary market capital partners
9. BPHC Loan Guarantee Program $160 million to support bank financing
CHC applies to BPHC & lender of choice
Section 330 CHCs only
Clinic expansion, construction, renovation
Guarantee of up to 80% of loan balance
10. CPCA Loan Programs $11 million capitalization ($10 million from The California Endowment, $1 million NCBDC)
Designed to be highly flexible, low hassle, low cost
Underwriting criteria developed with CPCA board input
Focus on access to capital for all California health centers 2 week processing time, standard application, underwriting to RR 6 & 72 week processing time, standard application, underwriting to RR 6 & 7
11. CPCA Loan Programs, cont’d Four programs:
Information Systems
Emergency Cash Flow
Facilities and Equipment
Revolving Lines of Credit
$14 MM committed since February 1999
$6.5 MM outstanding at 9/30/03
90 loans 45 health center corporations
1 Write Off Totaling $65,000 Valley Community Clinic. Gap funding.Valley Community Clinic. Gap funding.
12. HealthCAP Loan Program $10 million program, expanding to $14 million
$1 million State of CA 1st loss guarantee
Loans $250,000 - $1 million
15 year maximum term, 20 year amort
90% maximum loan-to-value Worked closely w/treasurer’s office; filling funding gap; small to medium size health facilitiesWorked closely w/treasurer’s office; filling funding gap; small to medium size health facilities
13. HealthCAP Program, cont’d Investor purchases 70% participations
NCBDC retains subordinate debt on remaining balance
Intend to replicate with other interested investors
14. Rural Health & Community CenterCalifornia Central Valley $6.0 million expansion of clinic serving farm worker population
Capital campaign approx. $1.0 million
Construction financed by NCB/DC & CDFI
Equipment financed through USDA direct loan
Permanent financing received 90% RD Guarantee
15. Contacting NCB & NCBDC Scott Sporte
NCB Development Corporation
www.ncbdc.org
1333 Broadway Suite 602
Oakland, California 94612
(510) 496-2223
ssporte@ncbdc.org