The program supports loans to eligible Health Center Program awardees for the construction, expansion, alteration, renovation or modernization of health center medical facilities. Applicants must be active Health Center Program awardees, as defined under section 330 of the Public Health Services Act.

The purpose of the LGP is to support access to capital funding and reduce costs for health centers by guaranteeing up to 80 percent of financing needed for capital infrastructure projects. While there is no limit on loan size, the LGP typically guarantees loans for projects of $5 – $7 million or more. After approving a loan guarantee, HRSA monitors the loan repayment status and assesses the financial health of the health center during the loan’s life.