Cal. Welfare and Institutions Code § 14088.18

(a) In order to increase the number of nonprofit providers under this article, the department may enter into contracts each fiscal year under this section with eligible nonprofit organizations to provide a one-time interest-bearing loan, repayable at the Pooled Money Investment Account rate, to that eligible organization. (b) Contracts entered into pursuant to this section shall be limited to contracts within those counties where the department does not have contracts authorized by this article on the effective date of this section. (c) Any loan entered into pursuant to this section shall not exceed one hundred thousand dollars ($100,000). (d) The department shall adopt standards and procedures for loan applications and repayment of the loans made pursuant to this section. (e) The department shall make no loan pursuant to this section until the department has made savings payments to contractors who have entered into contracts under this article on or before the effective date of this section. (f) For purposes of this section, “eligible nonprofit organization” means any organization which meets all of the following requirements: (1) The organization is exempt from taxation under Section 501(c)(3) or 501(c)(25)(C)(iii) of the federal Internal Revenue Code. (2) The organization is organized to provide health care to the medically underserved and to provide services in service areas.