New loan program available for rural Kentucky hospitals
The Kentucky Rural Hospital Loan Program (KRHLP) will make $20 million in low-interest loans available to hospitals located within counties with a population of fewer than 50,000 after a new program was announced Tuesday supporting rural healthcare across the commonwealth.
Rural community hospitals will benefit from this funding and be able to better maintain or upgrade their facilities, retain or increase staff and provide expanded health care services not currently available to residents.
Eligible hospitals can receive a loan ranging from $25,000 to $1 million per hospital facility, with a 1 percent fixed interest rate. Interested applicants are encouraged to confirm their status as a rural hospital by reviewing the 2020 U.S. Census Bureau Data and the Kentucky Hospital Directory by County published by the Cabinet for Health and Family Services.
Of Kentucky’s 120 counties, 100 have fewer than 50,000 residents, based on 2020 U.S. Census Bureau data.
Legislators developed the fund over several sessions.
Rep. Danny Bentley sponsored House Bill 387 in the 2020 session that established the rural hospitals operations and facilities revolving loan fund.
In the 2021 session, the General Assembly passed and Gov. Andy Beshear signed into law House Bill 556 that appropriated the funding.
The Cabinet for Economic Development and the Kentucky Economic Development Finance Authority will administer the program. Details can be found on the Cabinet’s website by clicking here.