September 2020 MFFA Newsletter

YOU'RE ALL INVITED!

For the first time ever, the National Association of Health and Education Facilities Finance Authorities (NAHEFFA) is inviting all non-profit partners to attend its annual meeting for FREE.

NAHEFFA will be providing a well-rounded, content-rich virtual conference that you can enjoy from the comfort of your home, or office. All you have to do is register HERE, and select "Nonprofit Organization, Guest of NAHEFFA Member." You will be asked to provide a name for your host organization: just type in "Montana Facility Finance Authority". There are no fees for you to attend. 

The conference is full of great speakers including:

Aruna Kalyanam - Deputy Chief Tax Counsel and Staff Director; Committee on Ways and Means--US House of Representatives

Craig Gilbert - Washington Bureau Chief--Milwaukee Journal Sentinal

Steve Slifer - Owner and Chief Economist--Numbernomics

...and many more!

Please see the agenda here: Agenda

We look forward to seeing you there. 

--MFFA Staff

Financial Programs

Emergency Loan Program (ELP)

Due to the Covid-19 pandemic, the MFFA created a new short-term lending program called the Emergency Loan Program. The purpose of this program was to provide fast and convenient operational loans to facilities due to the pandemic. The ELP comes with a 12-month term and holds a 2% interest rate which starts accruing on month three. Also, there is no payment until month six.

Direct Loan Program (DL)

This staff-approved program offers low-interest loans for eligible projects including construction and renovation, facility acquisition, loan refinancing, and purchase of equipment and finance costs. The maximum loan size is $300,000, unless combined with a Trust Fund Loan which raises the maximum loan size to $500,000. To apply for a Direct Loan, click here

5 Year Term: 2.00%

7 Year Term: 2.15%

10 Year Term: 2.25%

Trust Fund Loan Program (TFLP)

Subject to Board approval, these low-interest financing offer terms of up to 20 years and a maximum loan size of $1.5 million. These loans can be combined with a Direct Loan for a total loan amount of $2 million. To apply for a Trust Fund Loan, click here

5 Year Term: 2.25%         

7 Year Term: 2.50%

10 Year Term: 2.75%   

15 Year Term: 3.00%

20 Year Term: 3.25%

Stand-Alone Bond Financings Program (SA)

These bonds are flexible and can be structured with fixed or variable interest rates and with or without credit enhancement and/or ratings. Public offering or private placement options are available, depending on the size of the deal. For more information, click here

Master Loan Program (MLP)

Through an agreement with Board of Investments, this program provides low-interest, tax-exempt financing for smaller hospitals. Loans range from $1.5 million to $20 million, and can be marketed for more than one borrower at a time. For more information on the Master Loan Program, click here

The following financings were funded under this program this period:

Powell County Medical Center - $13,465,000 on a 16 year term with an interest rate of 2.62%. The net present value savings is estimated at $1.52 million.

Pricing Date: 7/24/20        Closing Date: 8/3/20

MFFA Grants

Energy Efficiency Program (EEP)

This  grant program  pays for an engineer to visit the facility and perform an energy audit. The audits are then used for guidance on energy conservation measures. The maximum grant size is $15,000 with a required 10% match. To apply for an EEP, click here

Montana Capital Assistance Program (MCAP)

These grants are for small rural hospitals to finance Facility Master Plans, Capital Financing Plans and Scope of Services Review.  The maximum grant size is $15,000 with a required 10% match. For more information, click here

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