Morehouse General Hospital has been awarded a $12 million loan for which it has been waiting for months, the United States Department of Agriculture's Louisiana director said Wednesday.

"We had a round-table conference (Tuesday)," Clyde Holloway said. "I knew it would be approved, but I couldn't say so until we got it in written form."

The loan is administered through the USDA's Office of Rural Development Community Facilities Program. In Washington, a decision on loaning the money was delayed twice this week, and officials have declined to say why that happened.

"We have lenders in place," Holloway said. "Everything is in motion."

Hospital Administrator Cheryl Faulkenberry has said the loan would go toward refinancing debt and making upgrades to facilities. The funds will be used to remodel the existing emergency room, build a new "fast track ER clinic" for patients who do not need emergency care and to purchase diagnostic imaging equipment, among other projects.

"We have to move forward," Holloway said. "Now that the loan has been approved, we can approve up to $7.5 million. And I'm going to approve it."

In July 2007, the Service District Board announced plans to seek voter approval for a 10-year, five-mill property tax that would generate roughly $650,000 annually for operating revenue.

Voters approved the measure by a 60-40 margin.

"The local people being willing to approve that, and showing their faith and support for the hospital, made all the difference in the USDA's decision," Holloway said.