Issuance of a loan is subject to the following provisions and terms:
1. To be eligible for a loan, a Rural Hospital must submit to the Department a current financial audit showing that the hospital is in good financial condition.2. To qualify for a loan, a Rural Hospital must request and use the funds for one or more of the following purposes:A. To maintain or upgrade the existing Rural Hospital's facilities;B. To maintain or increase the current staff of the Rural Hospital; orC. To provide health care services that are not currently available in the community which the Rural Hospital serves.3. The amount of the loan shall be not less than $25,000.00 and not more than $100,000.00 per Rural Hospital.4. Security or collateral for a loan shall be required from the Rural Hospital.5. The term of the loan shall not exceed twenty (20) years, subject to the life of the collateral for the loan.6. The rate of interest on a loan shall be fixed and equal to one percent (1%) per annum. A. Interest will begin accruing no later than the following:i. Final disbursement of loan funds, orii. One (1) year from Committee approval.7. Principal and interest payments will be required monthly starting no later than the following: A. Final disbursement of loan funds, orB. One (1) year from Committee approval.8. The loan may not be used to pay costs incurred before approval of the loan by the Committee, and the loan may not be refinanced.9. One hundred percent (100%) of the project costs must be incurred by the Rural Hospital within one (1) year of approval of the loan by the Committee.10. The Rural Hospital receiving a loan must employ at least eighty-five percent (85%) of the number of full-time employees employed on the date of approval of the loan throughout the term of the loan agreement. For the purpose of this rule, a "full-time employee" means a person employed by the Rural Hospital for a minimum of thirty-five (35) hours per week (this does not include temporary workers, temp-to-hire workers, part-time workers or traveling medical professionals).15 Miss. Code. R. 9-101-4.1.2
House Bill 365, 2022 Regular Legislative Session