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Gov. Beshear’s low-interest loan program supports rural hospitals

Published: Oct. 12, 2021 at 2:24 PM CDT|Updated: Oct. 12, 2021 at 5:42 PM CDT
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FRANKFORT, Ky. (KFVS) - Gov. Andy Beshear announced today that the Kentucky Rural Hospital Loan Program (KRHLP) will be making $20 million in low-interest loans available to aid rural hospitals throughout the commonwealth.

The administered funds will directly impact over 1.5 million Kentuckians living in rural areas by maintaining or upgrading facilities.

It will also help to retain or increase the current staff of the hospital and provide healthcare services that were otherwise not available to citizens.

“Hospitals are a cornerstone of rural communities and a key contributor to economic development,” said Gov. Beshear.

“Our goal is to create a better Kentucky for all of our residents, and that starts by investing in one of the most vital pieces of infrastructure: our rural hospitals.”

All hospitals located within a Kentucky county with a population of fewer than 50,000 ae considered eligible to apply for the program.

In order to qualify for financing, a rural hospital must request funds to maintain or upgrade it’s existing facilities, the current staffing or the services available to rural citizens.

Eligible hospitals can receive a loan amount between $25,000 to $1 million per hospital facility, with a 1% fixed interest rate.

KRHLP was created during the 2020 Regular Session of the General Assembly.

The Cabinet for Economic Development and Kentucky Economic Development Finance Authority (KEDFA) will administer the revolving loan fund program.

Interested applicants can review the 2020 U.S. Census Bureau data and the Cabinet for Health and Family Services’ Kentucky hospital directory by county to confirm their status as a rural hospital within the state.

The additional application process and loan requirements are now viewable on the Cabinet’s Kentucky business incentives webpage.

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