About the Montana Facility Finance Authority (MFFA)

The Montana Facility Finance Authority was created by the 1983 Legislature and administratively attached to the Department of Commerce.  It is governed by a seven member quasi-judicial board. Board members are appointed to four year terms by the Governor with the advice and consent of the Senate. The Authority was created to assist health care and related facilities contain future health care costs by offering financing at low-cost, tax-exempt interest rates. These cost savings are shared with the consumer in the form of lower facility charges.

The Facility Finance Authority is funded entirely by proprietary funds with revenues collected from interest, fees, and charges from participating institutions. No public funds or tax monies are appropriated to the Authority.

Most non-profit care facilities, including hospitals, nursing homes, assisted living facilities, residential homes for persons with developmental or mental disabilities, and pre-release facilities are eligible to participate in the programs offered by the Authority. The Legislature has extended eligible facilities to include small for-profit, value-added manufacturing facilities.

The Authority's financing process is designed to maintain and enhance access to the broadest range of financing alternatives to improve sustainability, effectiveness and efficiency of eligible health care and related facilities and small manufacturing business within the private and public sectors in Montana.

  • The objectives of the financing programs are:
  • To encourage the timely construction and reconstruction;
  • To encourage safe, secure and well-equipped facilities;
  • To access the broadest range of capital financing options; and
  • To secure the lowest cost capital.

Enhance Montana healthcare and community capabilities through access to cost-effective capital financing and development services.


The MFFA holds the following values as important to the achievement of its mission.  These values guide our internal conduct and relationships with our partners.

  • Accessibility
  • Accountability
  • Community
  • Effectiveness 
  • Relationships
  • Self-sustaining
  • Nimble

The MFFA outlines its goals and objectives in detail in its 2019 Strategic Plan.

Goal #1 Strategize

Devise strategies to provide cost-effective capital financing programs and development services for eligible facilities to improve healthcare and community wellness capabilities across Montana.

Goal #2 Outreach

Educate clients, policy makers, and the public about the benefits and importance of programs and services offered by the authority.  Support facility and community development by promoting good public policy, advocating for clients, and supporting planning and development efforts.

Goal #3 Expansion and Adaptation

Maintain and enhance operational effectiveness and organizational integrity by expanding and adapting organizational capacity, staff expertise, and administrative systems to meet the requirements of program strategies and outreach efforts.


MFFA Continues Its Vital Role in Advancing Montana's Crucial Health Care Industry 

2020 Financings can be found in our Authority Review 2020

2019 Financings can be found in our Authority Review 2019

2018 Financings can be found in our Authority Review 2018

2017 Financings can be found in our Authority Review 2017

2016 Financings can be found in our Authority Review 2016

2015 Financings can be found in our Authority Review 2015 

2014 Financings can be found in our Authority Review 2014

2013 Financings can be found in our Authority Review 2013

2012 Financings can be found in our Authority Review 2012


This year the MFFA saw the remarkable determination and innovation of Montana healthcare providers as they served on the front lines of a once-in-a-century pandemic. As lockdowns and contagion forced many hospitals to cancel elective procedures, a new problem of liquidity arose.  The MFFA worked with the Governor’s Office to release Bed Tax payments early and developed an emergency lending program to allow facilities impacted by Covid-19 to receive emergency funds to cover operating costs and defer existing debt held by the MFFA.  The loans served as a bridge until Paycheck Protection Program and CARES act funding could make its way to Montana. 

Since Covid-19 landed in Montana this past spring, we have been impressed by the commitment and skill of Montana healthcare providers. We are humbled to support them by helping them meet their capital needs.  This year our milestones include our financings as well as new programs designed to assist rural facilities through this crisis:

Milestones and achievements in 2020 included:

  • Issuing $66.2 million in tax-exempt bonds (two bonds/three series), over $1.28 million in Direct Loans (four loans) and over $3.7 million in Trust Fund Loans (three loans) and $2 million in Emergency Lending Program support (five loans) raising our total financings structured since 1983 to almost $3.44 billion.  
  • We saved Powell Memorial Healthcare over $1.52 million over 16 years by refinancing its outstanding Series 2010 bonds
  • We financed the construction of a new facility for Shodair Children’s Hospital, replacing an aging facility while increasing service capacity

The MFFA worked with econometric research firm IHS Markit to determine the impact of the projects we’ve financed on Montana communities.  Their review of our past decade showed that the projects financed by the MFFA have created or supported an average of 1,320 jobs per year and produced over $64.1 million in labor income per year.  Montana hospitals and healthcare facilities are a vital engine of Montana’s economy and provide not only critical health services, but are a cornerstone of a healthy economy across the state.  As we all look to 2021, and how to recover from the effects of Covid-19, the MFFA will continue to work with Montana hospitals to meet their capital financing needs.

I close my 2020 letter by saying thank you to our dedicated and forward-looking Board of Directors, our professional staff, financing partners, financial institutions, and associates. We thank you for your support and we look forward to continuing to serve Montana communities for years to come.

Adam Gill                                               
Executive Director

The Authority is an independent, self-supporting public authority. Its operational expenses are funded through fees charged to the facilities using the Authority's financing programs. No public funds or tax monies are appropriated to the Authority.

Application Fee (Initial Planning Service Fee)

The application fee for each series of bonds will be calculated subject to the following schedule:

Loan Amount Fee
Up to $ 5,000,000 30 basis points (bp) (.0030)
Up to $ 10,000,000 the > of 25 bp or $ 15,000
Up to $ 25,000,000 the > of 15 bp or $ 25,000
Up to $ 50,000,000 the > of 12.5 bp or $ 37,500
Up to $100,000,000 the > of 7.5 bp or $ 62,500
Over $100,000,000 the > of 6.5 bp or $ 75,000

Minimum fee of $1,000

Annual Fee (Annual Planning Service Fee)

The annual fee for each series of bonds shall be due annually.

The following annual fee schedule shall be used in assessing all new fundings:

Bond Fee
Stand Alone Bond Issues 5 bp X the outstanding principal amount
Private Placement Bond Issues 5 bp X the outstanding principal amount
Master Loan Program Bond Issues 10 bp X the outstanding principal amount

The maximum annual loan fee shall be $75,000 and the minimum loan fee shall be $100, whether for a single facility borrower, multi-facility borrower or a pool of borrowers.

The Authority may subsequently waive or reduce the annual planning service fee.

Direct Loan Program Fees and Expenses

  • One-percent (1%) origination fee.
  • Borrower is responsible for all associated loan expenses.

Trust Fund Loan Program Fees and Expenses

  • Origination fee: 1%
  • Borrower out-of-pocket expenses include borrower attorney, recording fees, etc.
  • Monthly loan service fee: 50 basis points.
  • Appraisal and environmental audit fees for real estate loans.