For years, Delta Dental of Colorado Foundation (DDCOF) has been dedicated to achieving oral health equity in Colorado, primarily through capital grants. As the sole oral health-focused funder in the state, DDCOF has expanded its support beyond traditional grantmaking by introducing mission-related investments (MRIs) in collaboration with community partners.
Known as the Oral Health Capital Loan Fund, these mission-related investments (MRIs) are managed in partnership with the Colorado Enterprise Fund (CEF), a locally based Community Development Financial Institution (CDFI) that prioritizes equitable access to capital. MRIs offer newfound flexibility to organizations providing essential oral health care to their communities, granting them access to vital financial support for their capital needs.
MRIs enable organizations to better meet the needs of their communities thanks in part to the flexibility of these loans. They can be used to fund oral health-related capital needs of community-based dental providers, services, and clinics. MRIs are available statewide but will be managed for equitable distribution across the state and across urban/rural communities.
Here are the key features of MRIs:
- Loan amounts start at a minimum of $50,000.
- Interest rates range from 1% to 2.5%.
- 0% origination fee; the typical 3% fee is subsidized by DDCOF.
- Loan terms extend from 5 to 10 years, with six months of interest-only payments and no pre-payment penalties.
- The decision, closing, and funding process typically takes only two weeks upon completing the application.
- Borrowers receive coaching from CEF at no additional cost.
Local organizations, Kids First Health Care, Tepeyac Community Health Center, and Project Worthmore have already benefited from MRIs to better serve their communities. Over the next few weeks, DDCOF will spotlight these organizations, shedding light on how they utilized the loans and the positive impact they’ve had.