First State Bank of Abernathy in the US has utilised the Federal Home Loan Bank of Dallas (FHLB Dallas) Economic Development Program (EDP) loans to support three struggling hospitals in West Texas.
These affordable loans have been instrumental in supporting operational expenses, ensuring that the hospitals remain open to serve the rural communities spread across the region.
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Haskell Memorial Hospital, situated in Haskell, Texas, with a population of 3,000, is one of the beneficiaries of a $1.3m EDP loan facilitated by First State Bank.
The hospital, which is about 150 miles east of Lubbock, Texas, is critical for treating patients who would otherwise face nearly an hour’s drive to the nearest hospital in Abilene.
Haskell County Hospital District CEO Michelle Stevens said that it is not only a healthcare provider but also one of the city’s ‘largest’ employers, with 80 full-time workers.
Stevens said: “The funds we received helped our hospital recover from an unexpected loss of $2m in government funding.”
The EDP provides favourably priced loans to finance a wide array of projects, including those in the healthcare sector such as hospitals and nursing homes, as well as commercial and infrastructure initiatives.
These advances are available exclusively to FHLB Dallas member institutions, which then extend loans to their customers.
First State Bank cashier Jentri Turner said: “It’s beneficial for our customer and the bank because we receive an affordable, competitive interest rate from FHLB Dallas and can lend money to struggling hospitals at a rate that they can afford.
“We are proud to be lending to these hospitals. In a sense, we are helping save lives.”
The initiative by First State Bank has not only provided financial relief but also maintained the health and operational stability of rural hospitals.
