TARGET LOAN PROGRAM

Purpose
The Target Loan Program offers loans for capital improvements that will support and strengthen the borrower's organizational structure, service delivery, and operations. Examples of eligible purposes include:

• Clinical service enhancements, such as adding exam rooms or dental services
• Physical reconfigurations, such as altering the front desk to improve patient flow
• Equipment or systems upgrades or replacement, such as purchasing a dental van or replacing a billing system

Limitation for hospital clients: Loan proceeds may be used only for physical improvements to facilities that directly assist underserved patients. Other limitations may also apply.

Financing Level

• Up to $200,000
• PCDC will consider capital projects with a minimum expenditure of $30,000, and will consider funding multiple projects within one financing (though the loan amount is capped).

Loan to Value
The loan may cover the entire cost of the project.

Term
Up to five years, with level monthly debt service payments. May be prepaid at any time without penalties or fees.

Security
Loans will be secured by a standard UCC lien and linked or cross-defaulted with existing PCDC loans. Other conditions and collateral requirements may be applied as warranted.

Interest Rate
Fixed rate of 4.5% to approximately 6%