Health and Educational Loan Program
Low Interest Rate Loans for Missouri's Small Health and Educational Facilities
PROGRAM OBJECTIVE 
The Missouri Health and Educational Facilities Authority (the Authority) recognizes the difficulty that small providers of health and educational services experience obtaining adequate financing for their capital needs. Therefore, in 1995 the Authority created the HELP program to provide these organizations access to low cost loans. The Authority, through HELP, intends to use funds generated through various programs to extend much needed low cost financing to Missouri's small health and educational providers.
PLEASE NOTE: The funds available for this Program are limited and are allocated on a "first come" basis.
Eligibility
General Requirements:
• For health facilities financings, the institution must have fewer than 100 hospital beds, and cannot be owned by or otherwise supported by the financial backing of a system or hospital with more than 100 beds.
• For educational facilities financing, the institution must have fewer than 2,000 students enrolled.
• Must be a health or educational facility as defined in the Authority's Act.
• Must be a non-profit 501(c)(3) corporation, according to I.R.S. definition or a political subdivision of the State of Missouri.
• Must have been in existence for at least three years performing the same types of services.
• Must demonstrate, to the satisfaction of the Authority and its Financial Advisor, evidence of fiscal soundness and the ability to meet the terms of the proposed loan.
• For construction and remodeling projects, must demonstrate readiness to begin projects shortly after funding.
• Must certify as to the benefits provided residents of the State of Missouri.
Additional Considerations
In addition to the General Requirements, consideration may be given to those projects which:
• Leverage funds from other sources.
• Demonstrate strong community support.
• Fill a pressing community need.
Uses of Funds
Funds may be used to:
• Perform feasibility studies, site tests, and surveys
• Pay permit, architectural, and other pre-construction costs
• Construct or remodel facilities
• Acquire a new facility
• Purchase equipment
Funds may not be used for:
• Day-to-day operating expenses (working capital)
• Reimbursement of prior project expenditures
• Funding start-up organizations
• Refinancing existing debt
Loan Information
Terms:
• Fixed interest rate equal to 10-year U.S. Treasury Note rate set on date loan is approved by Authority board action; OR
• Annually adjusted interest rate equal to 10-year Treasury Note rate set on date loan is approved by the Authority and reset on December 1st for each upcoming calendar year
• Maximum individual loan size and maximum outstanding balance for all aggregate loans is $400,000
• A proposal for adequate collateral (e.g., property, equipment, revenue pledge, etc.) is required to be submitted with the initial application information
• Borrowers must contribute a minimum of ten percent (10%) toward project costs. This ten percent (10%) must either be in the form of cash or documented project expenditures, subject to approval by the Authority
• Uniform monthly payments
• Borrowers may prepay the loan without penalties
• Maximum term of 10 years
Standard Covenants
Borrowers receiving loans must:
• Submit annual budgets, quarterly unaudited financial statements, and year-end audited financial statements
• Maintain adequate property and business insurance
• Notify the Authority of any significant changes in corporate existence prior to the occurrence (i.e., mergers, consolidations, structure or name changes)
Fees and Charges
• For approved loans, there is a one-time fee payable at closing equal to one-half of one percent (.5%) of the loan amount. This one-time fee is used to defray loan administration and closing costs and can be financed as part of the project.
• There are no ongoing fees of the program. However, loan payments more than 30 days late will be assessed a five percent (5%) penalty on the amount due. In addition, payments more than 60 days late may, at the option of the Authority, cause acceleration of the remaining loan balance.
Health and Educational Facilities Defined
To be eligible for financing, an applicant must have received non-profit status and qualify as a health or educational facility under the Authority's enabling legislation - Chapter 360 of the Missouri Statutes.
Applying for a Loan
The Authority welcomes your application and wishes you success in your financing endeavors. The Authority staff will be pleased to answer any questions you have or to provide technical assistance in preparing the application. A pre-application discussion with Authority staff is recommended to ensure that the borrower and project qualify for financing. Please call us at (636) 519-0700.
General Information:
Applications will be accepted at any time, loans will be made as funds are available. The Authority may schedule a site visit to evaluate the project and the borrower's operations.
Final approval is required by the Authority Board at a regularly scheduled meeting.
Submitting the Application:
Forward three (3) completed copies of your application to:
Missouri Health & Educational Facilities Authority
15450 South Outer Forty Road
Suite 230
Chesterfield, Missouri 63017