Where can I borrow money to finance a capital project?
It is often necessary to utilize loan funds for capital projects. Local banks can often loan funds for a portion of the project costs. However, it can sometimes be difficult to acquire a loan, especially at a reasonable interest rate, due to the risk associated with lending to struggling rural healthcare facilities. Several federal loan and loan guarantee programs exist that can be very helpful to facilities in securing loans, often with lower interest rates than might typically be acquired. USDA Community Facilities Direct and Guaranteed Loan Program Business and Industry Guaranteed Loans Distance Learning and Telemedicine Grant and Loan Program HUD 242 – FHA Hospital Mortgage Insurance Program SBA Certified Development Company (504) Loan Program Bond issues are another option. Many states have agencies that act as the vehicle for providing financial assistance to public and non-profit healthcare providers through loans funded by the issuance of tax-exempt bonds. The diversity of the
