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Knoxville Hospital and Clinics are getting about $1.3 million in pass-through loans to help with expanding and renovating the hospital, according to Iowa USDA Rural Development State Director Bill Menner.

Menner says the hospital project will allow them to better serve the community, especially in dealing with mental health issues, where some patients were sent away due to a lack of capacity.

Two different cooperatives, Central Iowa Power Cooperative and Pella REC, are the loan pass-through agents to Knoxville Hospital and Clinics with the USDA providing these loans interest free, helping free up money that would normally be used for financing, to be used for other projects.

Menner calls it a win-win situation for all involved.

Hospital CEO Kevin Kincaid says that now the finances are set, people should start seeing construction activity begin around mid-September.

“Things begin to really kick off by mid-to-late October,” Kincaid told KNIA/KRLS News. “There will be a big push to get the outside of this new building done, as much of that erected as possible before it freezes.”

Kincaid says a groundbreaking ceremony will be scheduled at a later date.