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California Health Facilities Financing

Healthcare Expansion Loan Program II (HELP II)
Frequently Asked Questions (FAQ)

FAQ Index

 

Uses of Funds

How may loan proceeds be used?

Loan proceeds up to $2,000,000 per borrower may be used for eligible uses as listed below.

Eligible Uses:

  • Purchase, construction, renovation, or remodeling of real property
  • Purchase equipment and furnishings
  • Perform feasibility studies, site tests, and surveys associated with real property
  • Pay permit fees, architectural fees, and pre-construction costs

Ineligible Uses:

  • Appraisal fees
  • Title fees
  • Financial advisor fees
  • Authority loan fees

Loan proceeds up to $1,000,000 may be used to refinance existing debt. The existing debt must qualify as an eligible use under the HELP II Loan Program.

  • Refinance existing debt, but only when a single obligation is paid in full

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Can I refinance an existing loan?

Yes, a qualifying existing loan may be refinanced, but the entire obligation must be paid in full.  Refinanced loan terms are: 3% fixed interest rate, 15 year amortization, and $1,000,000 loan maximum.

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