Interest rate drops for TCMH expansion project just before loan closing

Due to a recent drop in interest rates, Texas County Memorial Hospital will save almost $1 million in interest on the hospital’s $18.1 million expansion and renovation loan, board members heard last week at their monthly meeting.

The quarter point interest rate drop brings the rate down to 3.75 percent from 4 percent.
TCMH officials plan to meet on Oct. 19 with members of the Texas County Commission to close on the hospital’s low-interest loan to finance a 59,000 square foot hospital expansion and renovation project.

The loan closing comes a year after receiving word from the U.S. Department of Agriculture and Rural Development that financing had been approved for the hospital project.

“We were able to postpone closing on the loan by a couple of weeks to take advantage of a potential interest rate drop,” said Wes Murray, TCMH chief executive officer. “We are pleased to be able to take advantage of this.”

The interest rate for the USDA loan is fixed at 3.75 percent for the life of the loan — 30 years. The USDA loan was made available through Economic Recovery Act funds. TCMH was one of several entities across the nation that received the stimulus funds for a project.

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