The National PACE Association (NPA) and National Cooperative Bank (NCB) announced a lending program to help finance a nationwide expansion of Programs of All-Inclusive Care for the Elderly (PACE).
Over the last 12 months, NPA has worked with NCB, a long-time leader in innovative social finance, to help NCB develop a PACE lending program to address the lending gaps NPA members face as they work to implement new or expand existing PACE programs.
“PACE is a model of care that has always faced hurdles in accessing sufficient and affordable financing,” said NPA president and CEO Shawn Bloom.
“Because PACE is not easily understood, attracting adequate financing can be a challenge. For this reason, we were delighted to work with NCB to explore a PACE lending program. The new program will be a great benefit to the missions of both organizations.”
The NCB program will provide working capital and real estate lending to qualified PACE expansions and start-ups.
Under the program, PACE providers will work with a dedicated NCB team that understands the PACE model well and is comfortable with the regulatory, Medicare and Medicaid structures that support it.
Through the related LeverAge program, a partnership between LeadingAge, Grantmakers In Aging and NCB, NPA members who are also LeadingAge members may benefit from interest rate discounts, extended terms and credit support features.
“NCB has a history of supporting the development of affordable senior housing and aging services, including PACE,” according to Chuck Snyder, CEO of NCB.
“We expect that this new avenue of financing will provide even more opportunities for PACE development and expansion in the future. We are delighted to be working with NPA to meet our shared mission of expanding access to critical services for people with low income.”
PACE is a model of care that was developed in San Francisco in the early 1970s as an alternative to nursing homes.
In order to enroll in the program, a person has be certificated as needing a nursing home level of care, be age 55 or older, live in a PACE service area, and be able to live safely in the community with the support of PACE at the time enrollment.
There are more than 100 PACE organizations operating across the United States today.