NEWS RELEASE

United States Department of Agriculture • Rural Development

1221 College Park Drive, Suite 200, Dover, DE  19904

Phone: (302) 857-3580 • Fax: (302) 857-3640 • TDD: (302) 857-3585 • Web: http://www.rurdev.usda.gov

USDA Announces $10 Million for Nursing Home

                 Crisfield, MD December 17, 2007 – USDA Rural Development Deputy Administrator James (Chris) Alsop and State Director, Marlene Elliott Brown announced $10 million in loan funds to support the construction of the Alice Byrd Tawes Nursing Home.

        “Rural community hospitals, nursing homes and health care providers not only contribute to an improved quality of life for rural residents, but are also important sources of employment generating jobs and tax revenues that support a strong local economy,” said Alsop.  “Last year, USDA Rural Development provided $253 million nationally in loans and grants to help improve or replace rural health care facilities.”

        USDA Rural Development is supporting the Alice Byrd Tawes Nursing Home project through two loan programs. It is providing $6 million to the McCready Foundation, Inc., through the community facilities direct loan program, and The Bank of Delmarva is providing $4 million with the support of Rural Development’s community facilities guaranteed loan program.  The purpose of the guaranteed loan program is to reduce the risk that private lenders take in the event a borrower defaults on the loan.  In this case, USDA Rural Development, will if necessary, guarantee up to 90 percent of loss of principal and interest on the loan.

        “This is a wonderful program that demonstrates how the U.S. Government, through USDA Rural Development, can partner with communities and other lenders to do what the local communities deem as important and vital to their businesses and rural residents,” said Elliott Brown.  “Long term care providers are becoming more of a vital part of our rural way of life as we address the health care needs of our aging population.  USDA Rural Development is pleased to be a part of this essential community facility project.”

        The Alice Byrd Tawes Nursing Home opened nearly 40 years ago with the capability of housing 69 patients serving Crisfield and surrounding areas.  It provides skilled nursing care and skilled rehabilitation care for Medicare, Medicaid and private pay patients.  It is a non-profit nursing home that is physically attached to Somerset County’s only hospital, the non-profit McCready Memorial Hospital.  The nursing home no longer meets State guidelines for number of nurses’ stations and for resident bathing and toileting facilities.  When reconstructed, the nursing home will be a 76-bed, modern, up-to-code skilled nursing and rehabilitation facility.  An added feature will include a 30-bed, assisted living center, the first in the county.

       The total project cost to replace the nursing home in accordance with all State and Federal guidelines is expected to be $13.3 million.  Additional funds for the project are being provided by the State, the McCready Foundation and their community capital campaign.  The $10 million in loan funding is the largest community facility project that USDA Rural Development has supported on the Eastern Shore since the Bush Administration took office.  In 2005, the agency provided a loan of comparable size to help construct a public High School in Western Maryland. 

        Construction of the nursing home is expected to start in April.  Some residents of the nursing home will be moved to an unoccupied area of the hospital when construction begins.

         Charles Pinkerman, CEO of the McCready Foundation, said that "the new construction is a much needed project if we are to replace our aging nursing home and deliver high quality care to local residents for the next 40 years. The USDA has helped us in the past and its ongoing support is essential to providing health care to Crisfield and Somerset County."
        
        USDA Rural Development is committed to the future of rural communities.  Last year, the agency returned more than $97 million to rural Maryland.  They have a variety of loan, grant and loan guarantee programs that support agriculture, business opportunities, home ownership, home repair, rental housing, broadband technology, public safety, health care, education, social and cultural needs and energy related projects.  Additional information on rural programs is available by calling their State Office serving Maryland and Delaware at (302) 857-3580, their Snow Hill Office at (410) 632-0616 ext. 4 or by visiting their website at www.rurdev.usda.gov.  TTY users should call (302) 857-3585.