HATTIESBURG, Miss. – A low-interest loan provided by HOPE CU through the CDFI’s New Markets Tax Credits program has helped finance the Orthopedic Institute, a new medical facility treating bone and joint cases here.
“This new medical facility is the latest example of how the NMTC program is supporting entrepreneurs and community development projects in the region,” said Bill Bynum, president of the credit union. “Since the program’s inception, we have seen the tremendous impact the NMTC funding can have on attracting capital to communities that need it most.”
The tax credits are awarded under the Treasury Department’s Community Development Financial Institutions program to entities that make investments in underserved areas. Since the program’s inception in 2000, the credit union has tax credit allocations totaling $50 million, which it has leveraged into 70 loans totaling $75 million in Arkansas, Louisiana, Mississippi and Tennessee.
The $30-million facility includes 30 licensed orthopedic beds, six orthopedic operating rooms, pre-operative and recovery rooms, as well as support services such as physical therapy, laboratory and diagnostic imaging services.
Using some of its tax credit allocation, HOPE made two loans for the clinic’s development. The NMTC component allowed it to make the loans available at a lower rate. One of the loans will be forgiven after a seven-year period.