New Senate Bill Permanently Raises Bond Financing Levels for Hospitals

A new bill introduced in the Senate would permanently raise banks’ bond financing levels to improve hospitals’ access to capital, according to a report by AHA News Now.

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The Municipal Bond Market Support Act, S. 3350, permanently adopts a short-term stimulus measure, set to expire Jan. 1, that was part of the 2009 American Recovery and Reinvestment Act.

The measure would let banks buy up to $30 million in bonds per borrower and deduct interest on the debt issued to finance the deal. These deductions, known as bank-qualified bonds, were previously limited to $10 million for each debt issue.

Read AHA News Now’s report on bank-qualified bonds.

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