PRESS RELEASE
09/15/09
Contact: Karen Ager, (603) 228-2448 EXT. 31
Endowment for Health Partners with
NCB Capital Impact to Offer $3 Million
Safety Net Loan Fund
Targeted community health providers to gain new resource for working capital
CONCORD, NH (September 15, 2009) — The Endowment for Health, New Hampshire’s largest health foundation, has announced an innovative partnership with NCB Capital Impact that will provide loans to a targeted group of nonprofit community health centers, community mental health centers, and independent oral health centers needing lines of credit and working capital. The partnership, known as a Mission Related Investment (MRI), represents one of the only projects of its kind in the country.
Thirty organizations will be eligible to apply for loans ranging from $50,000 to $500,000. The Safety Net Loan Fund will offer fast-tracked loan processing and approval at favorable, below-market rates. The fund is designed to address the unique needs of safety-net providers who care for the uninsured and underinsured and who often face delays in reimbursement from government sources, including Medicaid.
“The Safety Net Loan Fund will provide useful and flexible financial tools so that community health providers can continue and expand service without financial interruption,” said Endowment for Health Vice president and Chief Operating Officer Mary Vallier-Kaplan. “With endowment funds down across the country due to the economy, it is important for foundations to seek innovative ways to leverage assets, Mission Related Investing is one of the tools philanthropy can use in addition to grantmaking. It is a way for our foundation to create value both socially and financially.”
The new fund, which becomes active on October 1, will make available a total of $3 million over the next five years for working capital and service expansion loans. The loan fund is set aside from monies unrelated to the Endowment’s grantmaking resources and the foundation will continue to award grants through its regular review process.
“NCB Capital Impact was best suited to serve as financial intermediary for our loan fund,” said Endowment for Health Program Director Jeanne Ryer. “They are a nonprofit community development financial organization and have direct experience in working with community-based health services around the country. NCB will match the Endowment’s initial investment of $1.5 million for an overall leveraged fund of $3 million. We are pleased to infuse this additional capital into New Hampshire to support the needs of our health-care safety net providers – organizations that provide care to New Hampshire’s most underserved populations.”
“This will be a useful financial tool for community health providers,” said Leslie Dandreta, finance director for Avis Goodwin Community Health Center. Dandreta attended a recent informational meeting about the new fund along with other community health, mental health and oral health center leaders. “Due to the patient mix we serve and the lag time in receiving reimbursements on a state and federal level, access to this kind of financing will help us bridge the gaps in cash flow and provide future options to expand services.”
“This partnership is an excellent opportunity for us to put our 25 years in financing community health centers to work improving access and quality for those most in need,” commented Scott Sporte, Managing Director for NCB Capital Impact’s lending group. “We bring a deep understanding of the unique needs of community-based organizations. Our strong credit quality and solid track record that has resulted in more than $429 million disbursed to organizations who serve 350,000+ patients annually. We are delighted to expand this important work in New Hampshire with The Endowment for Health.”
For more information about The Safety Net Loan Fund, click here.
About The Endowment for Health
The Endowment for Health was established in 1999. Since 2001, the Endowment has awarded more than 666 grants totaling more than $29 million to support a wide range of health-related programs and projects in New Hampshire. For more information about proposal guidelines and funding priorities for the 2009 program year, visit www.endowmentforhealth.org
About NCB Capital Impact
NCB Capital Impact, the non-profit affiliate of NCB, provides financial services and technical assistance to create more affordable homeownership, long-term supports innovations, and facilities for health care centers and charter schools. To learn more about NCB Capital Impact, and its programs and initiatives in advancing education, affordable housing, health care and long-term care for low- to moderate-income individuals, visit www.ncbcapitalimpact.org.
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