Montana CDC, U.S. Bank, and partners secure $7.3 million in financing for Bullhook Community Health Center in Havre, Montana

Havre nonprofit, Bullhook Community Health Center, has secured financing to provide residents of Hill County, with an expanded array of health and dental services.

Residents of Hill County will soon have better access to health care as well as increased job creation thanks to New Markets Tax Credit financing. Montana CDC and U.S. Bank have secured $7.3 million in permanent financing to support the new Bullhook Community Health Center. Founded in 2005, Bullhook Community Health Center provides healthcare services to 3,500 people per year. The new 19,000 square foot building will allow for expanded services at one centralized location, providing patients in the community the opportunity to access a variety of health care specialties with more professional and provider services.

This project showcases the benefits of collaboration as this project would not have been possible without multiple partners working together to complete the financing structure. Partners include, Montana Community Development Corporation, U.S. Bancorp Community Development Corporation, the community development subsidiary of U.S. Bank, Bear Paw Development Corporation, Great Falls Development Authority, and the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA).

Using New Markets Tax Credit financing for the project helps the organization construct a new medical services building to house the current primary care services and expand medical, dental and behavioral health services. The development will improve access to these as well as other vital preventive and palliative care providers and expand visits to up to 7,000 people per year

"Doubling the number of Montanans this facility serves is a smart investment into the Havre community for the long haul. The Bullhook Community Health Center project is about supporting jobs in the construction phase while making the Hi-Line an even more attractive place to live, work and raise a family," said Senator Max Baucus, who helped make New Markets Tax Credits available to rural areas as Chairman of the Senate’s tax-writing committee.

Senator Jon Tester is also a long-time supporter of the New Markets Tax Credit program. "One of the biggest challenges in rural America is making sure folks can access high-quality, affordable health care – and community health centers like Bullhook provide that care to thousands of Montanans," Tester said. "This New Markets Tax Credit will improve folks’ lives across Hill County, while also creating dozens of jobs in north-central Montana."

"We’re committed to fostering community development across the country and are pleased to partner with Montana CDC to help support economic growth in Montana," said Matt Philpott, director of New Markets, Historic, and Renewable Energy Tax Credit Investments for U.S. Bancorp Community Development Corporation.

This is Montana CDC’s first New Markets Tax Credit (NMTC) project in Havre and the second health facility in Montana CDC’s portfolio of NMTC projects. Dave Glaser, President of Montana CDC, recognizes the importance of using New Markets financing to leverage local resources. "This project came together as a result of effective national and local partnerships and showcases how working collectively can solve issues of access to capital in rural parts of Montana."

Since 2009, Montana CDC has provided nearly $130 million in NMTC financing to projects throughout Montana and Idaho.

Like all New Markets Tax Credit projects, there are significant community impacts associated with the facility. Some of the buildings’ features and community impacts include the following:

* Approximately 19,000 square feet of new construction that is anticipated to create 25 construction jobs.

* Increased access to health care and dental services for Hill County and full-integration of the "Medical Home" treatment model.

* The creation and retention of approximately 36 permanent jobs full-time equivalent (FTE) jobs for the health center.

* Transformation of a Brownfield Redevelopment Area into a project that that aligns with a larger, comprehensive revitalization plan for Havre.

"The Montana CDC team members working on the Bullhook Health Center project have been amazing and so helpful every step of the way," said Cindy Smith, CEO of Bullhook Community Health Center. "The extra efforts and actions that they took show they truly care about these projects and Montana communities. Bullhook Community Health Center is extremely grateful for the loyalty and support Montana CDC has shown to get us closer to our goal of bringing additional services and resources to fill the healthcare gaps in our community."

There was a ground breaking ceremony on site, July 12th from 9-11. Construction is expected to be complete in June of 2014.

Montana CDC received its first allocation of NMTCs in 2009, and since that time, the financing has spurred projects totaling $130 million across Montana and Idaho. For more information on the New Markets Tax Credit Program or other business financing options in Montana, contact:

David Glaser, Montana CDC President, 406-728-9234, ext. 211, or visit Montana CDC’s website at: http://www.mtcdc.org

About Montana CDC

Headquartered in Missoula, Montana Community Development Corporation (Montana CDC) is a 501(c) 3 that provides business financing that can transform the lives of individuals and strengthen community prosperity. Since 1986, Montana CDC has lent over $250 million through its business loan program including New Markets Tax Credit enhanced loans. Additionally thousands of businesses have gone through Montana CDC’s consulting and training programs. With its financing and consulting tools, Montana CDC helps entrepreneurs start new businesses, helps business owners expand their businesses, and works to create vibrant economic communities with strong jobs.

About New Markets Tax Credits

New Markets Tax Credits (NMTC) were established by Congress in 2000 to encourage the investment of private capital in designated low-income communities in order to create jobs, generate economic activity and improve the quality of services in low-income communities and to low-income persons. NMTCs attract investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax return in exchange for making qualified equity investments in specialized financial institutions called Community Development Entities (CDEs). In turn, CDEs provide below-market financing to transformative development projects in low-income communities across the country. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. For more information, visit http://www.cdfifund.gov.

About U.S. Bancorp Community Development Corporation

With more than $10.9 billion in assets as of March 31, 2013, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC’s commitments provide capital investment to areas that need it the most and have contributed to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable and market-rate homes, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at http://www.usbank.com/cdc.