First few Article Sentences
Governmental hospitals seeking capital for renovations, new construction or acquisition may have only until the remainder of the year to take advantage of a temporary Federal option designed to provide lower-interest financing. At the end of 2010, the ability to designate qualified debt as Build America Bonds (BABs) will sunset if it is not renewed in the federal budget. By designating taxable debt as BABs, borrowers can be reimbursed by the federal government for 35% of their interest coupon expense. Combining BABs with HUDís Section 242 mortgage insurance program creates a lower-cost, long-term, non-recourse debt structure that eliminates the difficulty of finding both a construction and permanent loan.