Local nonprofit hospitals may apply for emergency operating loans

The Bank of North Dakota would provide emergency operating loans to eligible local nonprofit hospitals. The program covers local nonprofit hospitals in cities with fewer than 2,500 people under the most recent decennial census. The hospital's governing board must apply by March 31, 2026. The board must provide financial information, including information about other financing and funding sources. The board must provide an operating plan and cash-flow projections showing that future operations and loan repayment are feasible. A loan could be up to $5 million, with annual interest no higher than 2 percent and a term of no more than 11 years. The first year could allow interest-only payments. Applications must be submitted by March 31, 2026. Section 1 is stated to remain effective through June 30, 2037.

The Office of Management and Budget would transfer $5 million from the state general fund to the medical facility infrastructure loan fund for the operating loan program. The transfer supports the medical facility operating loan program described in Section 1. The money comes from general fund money not otherwise appropriated. The appropriation is identified as one-time funding. The transfer is authorized from the Act's effective date through June 30, 2027. The Act states that it becomes effective immediately upon filing with the secretary of state.