The new facility will feature all private rooms, three operating rooms and two outpatient procedure rooms as well as a state-of-the-art radiology department.
The 25-bed critical access hospital obtained a USDA commitment for a $37 million direct loan at a fixed interest rate of 3.375 percent for 40 years as well as a commitment for $10 million of guaranteed loan funding for a total financing amount of $47 million, according to Lancaster Pollard, the firm responsible for structuring and executing the financing.
Because the USDA Community Facilities program provides permanent financing, not construction financing, Lancaster Pollard suggested the sale of tax-exempt bond anticipation notes to fund the majority of the building costs. Lancaster Pollard underwrote $37 million of BANs with a three-year term.
The remainder of the total $53 million construction funding (project costs and existing debt) came from $6 million in hospital equity and a $10 million construction loan from the community bank that is serving as the USDA Community Facilities guaranteed lender.
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