Adam Gill, executive director of the Montana Facility Finance Authority (MFFA), told the appropriations subcommittee the authority helps nonprofit healthcare and community borrowers access lower-cost capital through conduit bonds, direct revolving loans, trust-fund loans and a commercial PACE (CPACE) program.

Gill explained conduit bonds are issued through local units of government and allow nonprofits to access tax-exempt rates. He used a recent refinancing example: Beartooth Billings Clinic and Red Lodge, where MFFA helped refinance higher-cost loans and achieved a lower fixed rate that saved the borrower about $2.2 million over the bond term.

MFFA also operates small direct revolving-loan programs (typical loans below $500,000), a coal-tax-trust-funded loan option (loans up to $1.5 million), and the CPACE program that enables energy- and water-efficiency upgrades paid via a property tax special assessment. Gill cited a private renovation financed by CPACE that included heat pumps, lighting and windows and noted lendersinterest in the program is growing.

Why it matters: MFFA said these financing channels help rural hospitals, clinics and small businesses obtain critical equipment and repairs that otherwise might be unaffordable. Gill offered examples including a trust-fund loan that enabled a rural medical center to acquire an MRI that otherwise would require patients to travel more than 100 miles.

Ending: The authority said it operates without taxpayer support, funds its operations from fees, and remains available statewide for eligible borrowers; lawmakers had no substantive follow-up questions during the hearing.