Notice2024-08219

Notification of Lender and Servicer Eligibility Criteria for Participation in the Health Center Loan Guarantee Program

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
April 18, 2024

Issuing agencies

Health and Human Services DepartmentHealth Resources and Services Administration

Abstract

This notice seeks public comment to update the Health Center Loan Guarantee Program lender and servicer eligibility criteria in accordance with OMB Circular A-129. The original notice of lender eligibility criteria for the Health Center Loan Guarantee Program was published in the Commerce Business Daily on January 7, 2000.

Full Text

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<title>Federal Register, Volume 89 Issue 76 (Thursday, April 18, 2024)</title>
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[Federal Register Volume 89, Number 76 (Thursday, April 18, 2024)]
[Notices]
[Pages 27769-27770]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08219]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Resources and Services Administration


Notification of Lender and Servicer Eligibility Criteria for 
Participation in the Health Center Loan Guarantee Program

AGENCY: Health Resources and Services Administration (HRSA), Department 
of Health and Human Services.

ACTION: Request for public comment.

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SUMMARY: This notice seeks public comment to update the Health Center 
Loan Guarantee Program lender and servicer eligibility criteria in 
accordance with OMB Circular A-129. The original notice of lender 
eligibility criteria for the Health Center Loan Guarantee Program was 
published in the Commerce Business Daily on January 7, 2000.

DATES: Submit comments no later than May 20, 2024.

ADDRESSES: Electronic or written comments should be submitted through 
the Bureau of Primary Health Care (BPHC) Contact Form (new users must 
request access) or to 5600 Fishers Lane, Rm. 16N-20, Rockville, MD 
20857, no later than 30 days after the publication date.

FOR FURTHER INFORMATION CONTACT: Mary Lou Ojeda, Lead Public Health 
Analyst, or Valerie Green, Loan Specialist, BPHC, Office of Policy and 
Program Development, Strategic Initiatives, HRSA, 5600 Fishers Lane, 
Rm. 16N-20, Rockville, MD 20857, 301-594-4300, or the BPHC Contact 
Form.

SUPPLEMENTARY INFORMATION: Title XVI, part A of the Public Health 
Service Act established the authority for the Department of Health and 
Human Services to guarantee the principal and interest on certain loans 
made by non-Federal lenders. Under this authority, the Health Center 
Loan Guarantee Program guarantees up to 80 percent of the outstanding 
principal and interest on eligible loans for the construction, 
renovation, and modernization of medical facilities that are operated 
by health centers funded under the Public Health Service Act. These 
health centers, which are community-based private nonprofit or public 
entities, provide primary health care services for medically 
underserved populations. The approximately 1,400 organizations that 
receive funding are located in urban and rural communities throughout 
the nation.
    HRSA's BPHC administers the Health Center Loan Guarantee Program, 
which has a total current lending authority of $825 million. Under the 
Program, lender and servicer eligibility requirements have been 
established, with participation open to eligible non-Federal lenders. 
Consistent with the policies set forth in OMB Circular A-129, this 
notice provides interested parties information regarding eligibility 
criteria for participating as a lender or servicer in the Loan 
Guarantee Program. Specifically, to participate in the Program, a 
lender or servicer must: (a) Be regulated or certified and in good 
standing with a Federal financial institution regulatory agency, or 
furnish satisfactory evidence of adequate financial and capital 
condition showing that the lender has (i) a minimum adjusted net worth 
of $250,000, or (ii) at least $50,000 in working capital plus 1 percent 
of the total volume in excess of $25 million in guaranteed loans 
originated, serviced, or purchased during the lender's prior fiscal 
year, up to a maximum required adjusted net worth of $2.5 million, and 
one or more lines of credit with a minimum aggregated of $1 million; 
(b) Not be currently debarred or suspended from participation in any 
United States government contract or delinquent on a debt owed to the 
United Stated government or any agency or instrumentality thereof; (c) 
Be able to obtain and submit proof of fidelity/surety bonding and/or 
errors and omissions insurance with the Federal Government as a loss 
payee if the lender has previously had questionable performance under 
Federal guarantee programs or is not regulated by the Federal 
Government or certified by the U.S. Department of the Treasury; (d)

[[Page 27770]]

Provide, if so requested, the qualifications of principal officers and 
staff of the lender or servicer who will be or are responsible for the 
administration of the loan(s) guaranteed under the Program showing that 
principal officers have a minimum of 2 years of experience in 
originating or servicing guaranteed loans; (e) Provide, if the lender 
or servicer has one or more loans guaranteed under the Program, proof 
of acceptable performance as a lender or servicer, which shall include 
for each and every loan adherence to all the terms and conditions as 
set forth in the agreement between HRSA and the lender or servicer; and 
(f) Be able to demonstrate the capacity to hold and account for loan 
documents, receive all payments of principal and interest, and 
otherwise service and administer the loan in a manner consistent with 
accepted standards of loan servicing employed by prudent lenders or 
servicers generally. A lender or servicer's eligibility for 
participation in additional loans guaranteed under the Program will be 
newly assessed and reviewed at each application submission during the 
application financial sustainability and viability technical review and 
at least every 2 years in accordance with monitoring and evaluation 
procedures.

Maria G. Button,
Director, Executive Secretariat.
[FR Doc. 2024-08219 Filed 4-17-24; 8:45 am]
BILLING CODE 4165-15-P


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Indexed from Federal Register on April 18, 2024.

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