HHS Health Resources & Services Administration, Bureau of Primary Health Care
The Health Resources and Services Administration (HRSA) provides funding to Health Centers to improve health and achieve health equity through access to quality services, a skilled health care workforce, and innovative programs. HRSA’s Bureau of Primary Health Care (BPHC) is responsible for administering the Health Center program.
HRSA Health Center Capital Development Programs
HRSA Health Center Capital Development grants support Health Center efforts to expand capacity to provide primary and preventive health services to medically underserved populations in underserved communities. HRSA periodically provides limited capital development funding to Health Centers. However, these funds are limited and only meet a small percentage of the documented capital needs of Health Centers. Substantial additional funds are required to not only build new facilities and equipment, but also to renovate existing clinic space and replace obsolete equipment.
HRSA Loan Guarantee Program
HRSA's Loan Guarantee Program guarantees loans secured from non-federal lenders and is not to be considered a direct loan or grant. This program is generally expected to operate as follows: the applicant for a loan guarantee under this Program borrows funds secured from a non-federal lender and guaranteed up to 90 percent by the Bureau of Primary Health Care (BPHC) to develop a network or plan, and/or operate a network or plan already in place. To be eligible for a loan guarantee under this program, the network or plan must be owned or controlled by Health Centers (see Eligible Applicants and Definitions sections below). Under this Program, a network or plan may receive only one loan guarantee, except that upon showing of good cause the BPHC may make additional loan guarantees.
Health Care and Other Facilities Construction Program
HRSA's Health Care and Other Facilities (HCOF) Construction Program provides congressional-directed funds to health facilities for construction-related activities and/or capital equipment purchases. Most projects are completed within three years, although some take as long as five years.
Rural Development Loan & Grant Programs Available in Michigan
The U.S. Department of Agriculture has loans, loan guarantees, and grants available for facility development and improvement projects in rural areas with underserved populations. Direct loans and grants may be made for essential community facilities. Loans and grants are available in areas with populations of 20,000 or less. The loans have very favorable interest rates and extended terms. Communities with populations under 50,000 may qualify for other grants, loans, and loan guarantee programs. Contact your local USDA office:
USDA Rural Development’s Community Facilities Program
The U.S. Department of Agriculture Rural Development’s Community Facilities Program offers direct and guaranteed loans and grants to finance and facilitate the development of more than 80 different types of essential community facilities serving rural areas. These include hospitals, nursing homes, health clinics, police, fire or rescue facilities, equipment or vehicles, libraries, and municipal or county buildings. Since 2001 Michigan has received more than $198 million to assist rural communities through the Community Facilities program. Applicants must have the legal authority to borrow and repay loans, to pledge security for loans, and construct, operate, and maintain the facilities. They must also be financially sound and able to organize and manage the facility effectively. Contact Rural Development for information about programs and advice on how to assemble information to determine engineering feasibility, economic soundness, cost estimates, organization, financing and management matters. USDA can also help with your application. USDA’s mission is to increase economic opportunity and improve the quality of life for all rural Michigan residents.
Community Development Financial Institutions
A certified Community Development Financial Institution (CDFI) is a specialized financial institution that works in market niches that are underserved by traditional financial institutions. CDFIs provide a unique range of financial products and services in economically distressed target markets, such as mortgage financing for low-income and first-time homebuyers and not-for-profit developers, flexible underwriting and risk capital for needed community facilities, and technical assistance, commercial loans and investments to small start-up or expanding businesses in low-income areas. CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions such as loan and venture capital funds. CDFI certification is a designation conferred by the CDFI Fund and is a requirement for accessing financial and technical award assistance from the CDFI Fund through the CDFI Program, Native American CDFI Assistance (NACA) Programs, and certain benefits under the BEA Program to support an organization's established community development financing programs.
Community Development Financial Institutions Fund
The CDFI Fund was created for the purpose of promoting economic revitalization and community development through investment in and assistance to CDFIs. One of the ways the CDFI Fund achieves its purpose is to promote access to capital and local economic growth through its New Markets Tax Credit (NMTC) Program by providing an allocation of tax credits to community development entities (CDEs) which enable them to attract investment from the private-sector and reinvest these amounts in low-income communities.
New Markets Tax Credit Program
Congress established the New Markets Tax Credit Program (NMTC) Program in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of 7 years (5 percent for each of the first 3 years, and 6 percent for each of the remaining 4 years). The investment in the CDE cannot be redeemed before the end of the 7-year period. These credits can often be incorporated into the financial plan of significant facility projects. They are cost-effective in projects usually exceeding $5 million. These are generally arranged by organizations familiar with arranging financial packages for development projects, such as Community Development Financial Institutions (CDFIs) and developers of large projects. These credits may only be used in qualifying census tracts. Allocations of New Markets Tax Credits are limited and distributed to CDFIs periodically, so their availability changes. See Financial Institutions or Architects and Developers sections.
Historic Preservation: State of Michigan Preservation Office
For information on utilizing Historic Preservation Tax Credits click here or contact:
Michigan State Historic Preservation Office
702 W. Kalamazoo St.
P.O. Box 30740
Lansing, MI 48909-8240
Michigan Economic Development Corporation
The Michigan Economic Development Corporation (MEDC) is a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, tourism, film and digital incentives, arts and cultural grants, and overall economic growth. MEDC offers a number of business assistance services and capital programs for business attraction and acceleration, economic gardening, entrepreneurship, strategic partnerships, talent enhancement and urban and community development. MEDC, founded in 1999, also developed and manages the state's popular Pure Michigan brand. The MEDC community development team is available to provide technical assistance and may be helpful in planning for community redevelopment including health center development. There are also quick links to program documents.
The Michigan Economic Development Corporation (MEDC) Community Development Guide is a community guide that has been developed primarily as a reference tool for Michigan's communities. It is a free, in-depth resource for local officials and community developers and primarily identifies current community and economic development tools available within Michigan.
Return to the main Capital Development webpage
Phillip Bergquist, CHCEF
Director Health Center Operations