Senators debate $50M revolving loan fund and long-term care association rates

During a recent meeting of the North Dakota Senate Appropriations Committee, discussions centered on the state’s revolving loan fund, which currently holds $50 million. This fund has been a critical resource for long-term care facilities, particularly since its inception during the Bakken boom when there was a pressing need for medical infrastructure in the region.

Committee members explored the frequency of borrowing from this fund, revealing that there is consistent demand, with approximately $5 million recently lent out. However, concerns were raised about the fund's sustainability and whether it runs out of money. The conversation highlighted the need for a policy review regarding the interest rates applied to loans, particularly the 1% rate for long-term care associations compared to the standard 2% rate for other borrowers.

Senator Davidson questioned the rationale behind maintaining the lower rate for long-term care, suggesting that aligning it with the 2% rate could be more equitable. The committee acknowledged that any changes to the fund's structure or interest rates would require legislative action and further discussions among stakeholders.

The meeting underscored the importance of the revolving loan fund in supporting healthcare facilities in North Dakota, as well as the ongoing need for legislative oversight to ensure it meets the evolving demands of the community. As the state continues to navigate its healthcare infrastructure needs, the decisions made regarding this fund will have significant implications for residents relying on these essential services.