TRANSACTION PROFILE: BRIDGE LOAN KICK-STARTS $3.5 MILLION HEALTHCARE GRANT

In late 2017, the Finger Lakes Area Counseling and Recovery Agency (FLACRA) received a $3.5 million capital grant award from New York State to upgrade and add capacity at its flagship location. To cover upfront project costs, Vital Healthcare Capital (V-Cap) provided FLACRA with a critical bridge loan, ensuring that patients will benefit from access to FLACRA’s expanded residential substance abuse treatment program.

ABOUT FLACRA:

  • Founded in 1973 and based in Clifton Springs, NY, FLACRA is a behavioral health provider of residential, outpatient and jail-based treatment and care management services that reaches over 3,000 people a year.Since the 1990s, FLACRA has provided supportive housing, including housing for veterans in Ontario County.
  • Since the 1990s, FLACRA has provided supportive housing, including housing for veterans in Ontario County.
  • FLACRA is expanding to provide mobile outreach, medication-assisted treatment and mental health counseling.

FINANCIAL CHALLENGE

  • FLACRA received a Statewide Health Care Facility Transformation Program (SHCFTP) capital award, but awardees must pay their project expenses up front and get reimbursed after submitting proof of expenditures.
  • FLACRA realized they could finance their award and use the loan proceeds to pay for pre- development, construction and other project costs; reimbursements from the SHFCTP award could repay the loan.

FINANCIAL SOLUTION

  • V-Cap provided two loans to FLACRA:
    • A $75,000 pre-development loan for FLACRA to cover design and other soft costs at the project’s start.
    • A $750k bridge loan to match the cash flow and timeline of FLACRA’s $3.5 million construction project.
“FLACRA is pleased to have V-Cap’s partnership in financing expansion of needed services. We hope that other agencies can access V-Cap resources to advance their strategic goals.”
MARTY TELLER, CEO, FLACRA
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