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New low-interest loan program supports rural hospitals across KY

Kentucky hospitals eligible for funds to upgrade and maintain critical infrastructure

FRANKFORT, Ky. — Kentucky Rural Hospital Loan Program (KRHLP) is making $20 million in low-interest loans available to assist rural hospitals across the commonwealth.

The funds administered will directly impact the 1.8 million Kentuckians living in rural areas by maintaining or upgrading hospital facilities, retaining or increasing the current staff of the rural hospital, and providing health care services not currently available to citizens.

Any hospital located within a Kentucky county with a population of less than 50,000 is eligible to apply for the KRHLP program. To qualify for the low-interest loan financing, a rural hospital must request funds to maintain or upgrade the existing facilities, the current staffing, or the services available to rural citizens.

Eligible hospitals can receive a loan amount ranging from $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 should 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 loan requirements and application process are now available to view on the Cabinet’s Kentucky business incentives webpage.

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