The health and wellbeing of a community are important for their quality of life and economic prosperity. When residents are healthy, they can work, run their small businesses, and contribute to the social fabric of their community. Having partners and organizations that provide health services, such as the AIDS Healthcare Foundation (AHF), helps support residents’ health and wellbeing as well as the community’s quality of life.
Not only does a community need organizations that provide health services, but it also needs financial institutions and advisors to help finance health service development projects. The financial sector is imperative when providing capital to nonprofits so that these types of projects can move forward. To provide affordable financing to these nonprofits, financial institutions and advisors can work with the California Economic Development Authority (CEDA), a joint-powers association that issues tax-exempt bonds.
In October 2019, CEDA closed a $100,000,000 financing deal with AHF, CEDA’s largest financing project to date. CEDA issued tax-exempt bonds for AHF so that they can implement improvements and development projects at four of their properties in the greater Los Angeles area. These improvements included administrative and medical space as well as affordable housing units.
AHF is a global nonprofit organization providing cutting edge medicine and advocacy to over 1 million people in 43 countries. As the largest provider of HIV/AIDS medical care in the U.S., AHF funds its mission to rid the world of AIDS through a network of pharmacies, thrift stores, healthcare contracts, and other strategic partnerships. Generating new, innovative ways of treatment, prevention, and advocacy have been the hallmark of AHF’s success.
AHF is similar to many non-profit organizations in a community, with a larger impact than just their stated mission. These organizations are local employers, investors, and help create the unique culture of an area. However, financing can be difficult for nonprofit businesses. Fortunately, CEDA 501(c)3 bond financing and their financial intuition partners provide a cost-effective way to help AHF realize their organizational goals. Because of this project, AHF is improving the community’s quality of life by providing innovative ways of treatment, employment opportunities, and investment.
To learn more about how to help your non-profit businesses take advantage of this financing tool, how your financial institution can partner with CEDA to be a lender, or how your financial advisor can work with CEDA, then contact Michelle Stephens at michelle@caled.org.