Bank & USDA Provide $11.5 Million Guaranteed Loan

BATAVIA, N.Y., April 26, 2010 – The U.S. Department of Agriculture Rural Development agency and The Bank of Castile presented a guaranteed loan of $11.5 million this morning to the United Memorial Medical Center (UMMC). The funding will be used to complete construction of the hospital’s 44,000 square-foot addition. USDA Rural Development also announced that more than $1.5 million in American Recovery and Reinvestment Act (ARRA) funding has been awarded to UMMC. Administered through Rural Development’s Community Facilities program, the ARRA funding consists of a $1,383,390 direct loan and a $145,000 grant, which UMMC will use to buy equipment for its new surgical suites. “One of our agency’s primary missions is improving the quality of life in rural communities. Supporting the renovation and expansion of the United Memorial Medical Center certainly helps us achieve that objective,” said Jill Harvey, USDA Rural Development State Director in New York. “UMMC’s completed project will double the size of the hospital’s surgical area and provide doctors and patients with access to the latest technological advances. The end result will be state-of-the-art medical care for Genesee County and I am proud of the role USDA Rural Development had in supporting this essential project.” “We are pleased to partner with the USDA in assisting with this project,” said James W. Fulmer, President and Chief Executive Office of The Bank of Castile. “UMMC is vitally important to our community in so many ways – obviously by providing first-class health care, but also as one of the largest employers in our area. The economic impact of UMMC is significant to our region.” “Completing the expansion of the surgical department fulfills a strategic initiative contemplated during the merger of St. Jerome and Genesee Memorial Hospitals,” said Mark Schoell, President and Chief Executive Officer, United Memorial Medical Center. “Finally we will have a facility that matches the quality of care provided within the walls of the hospital.”The Bank of Castile’s $11.5 million guaranteed loan was made through Rural Development’s Community Facilities program. The agency is providing a 90 percent guarantee on the loan. UMMC’s Recovery Act award was a direct loan and grant from USDA. The terms for the $1,383,390 loan are 20 years at 4 percent interest. USDA Rural Development’s Community Facilities program helps finance essential community facilities for public use in rural areas. These facilities include childcare centers, hospitals, medical clinics, assisted living facilities, fire and rescue stations, police stations, community centers, public buildings and transportation. Through this program, USDA ensures that such facilities are available to all rural residents. These funds are available to public bodies, non-profit organizations and recognized Indian tribes.For more information on USDA Rural Development programs, contact the Rural Development state office at (315) 477-6400 or visit Rural Development’s web site at http://www.rurdev.usda.gov/ny.