MH&EFA Missouri Health & Educational Facilities Authority
Programs

HELP Program

Health and Educational Loan Program

Low Interest Rate Loans for Missouri's Small Health and Educational Facilities

PROGRAM OBJECTIVE     Application Form

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 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 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.

• Maximum individual loan size is $500,000. Maximum outstanding balance for all aggregate loans is $500,000 per borrower without specific Authority approval.

• A proposal for adequate collateral (e.g. revenue pledge, mortgage, equipment, deposit agreement, etc.) is required to be submitted with the initial application information. If a mortgage is proposed, title insurance may be required which can be financed as part of the project.

• 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.

• Level monthly payments.

• Borrowers may prepay the loan without penalties.

• Maximum term of 10 years.

Standard Covenants

Borrowers receiving loans must:

• Submit 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). Borrowers receiving loans must:

• Submit 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 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:     Application Form

Forward completed application by mail to:

Michael J. Stanard
Executive Director
Missouri Health & Educational Facilities Authority
15450 South Outer Forty Road
Suite 230
Chesterfield, Missouri 63017
Or electronically to:
mstanard@mohefa.org