DDCOF Provider Loan Program 2020
Delta Dental of Colorado Foundation has partnered with the Colorado Enterprise Fund to distribute 3.5% low-interest loans for oral health providers experiencing financial difficulties as they reopen their practices and comply with COVID-19 protocols. Nonprofit clinics and community health centers can also apply. The Colorado Enterprise Fund, a local Community Development Financial Institution (CDFI), is interested in working with practices reaching underserved communities, especially in areas of Colorado with limited oral health access.
Data from the Health Policy Institute shows that patient volumes decreased significantly while elective care was postponed. Private practices saw a larger decline than public health settings. From small business owners to dental directors across the state, many providers are struggling to gain financial assistance. Though the U.S. Department of Health and Human Services (HHS) has announced additional distributions for eligible Medicaid and Children’s Health Insurance Program (CHIP) providers, HHS is still working to distribute relief broadly to dentists.
These loan options provide access to capital right now. The program details include:
- Loans up to $50,000 per practice available at a 3.5% interest rate to the borrower, which is lower than what a commercial lender would provide for a loan of this size.
- The first six months of payments are interest only and there are no prepayment penalties.
- Business coaching services to all borrowers to help navigate these difficult times.
- Quick turnarounds with decision, closing, and funding within two weeks of completed application process.
- Additional criteria is on the loan application.
Our partnership with the Colorado Enterprise Fund celebrates a commitment to the provider community. Though our investment is helping to provide the funds, the loan is fully administered through this grantee. The Colorado Enterprise Fund is the first nonprofit lending institution in Colorado. As a CDFI, they are certified by the U.S. Department of the Treasury and prioritize serving economically distressed communities and empowering underserved small business owners to thrive.
As a Foundation focused on innovation, this is our first time leveraging program related investments as an important new tool to help achieve our Theory of Change. This impact investing strategy expands our portfolio to provide future revenue for grants and other programs. We are engaging the Colorado Health Institute to evaluate and understand how these loans support the resiliency of oral health care in the wake of COVID-19.
The loan program is open through September and ensures a quick response for applicants. For more information, visit the Colorado Enterprise Fund’s website.