Bond Programs

Benefits of a 501(c)3 Tax-Exempt Bond:

• Favorable, below-market interest rates.
• Long-term financing.
• Fixed and floating rate options are available.
• Rate options: Fixed and floating rate options are available.

Eligibility Restrictions:

Only those non-profits which are designated as 501(c)3 corporations by the Internal Revenue Service will qualify. The 501(c)3 certification must be evidenced by a determination letter from the IRS or other qualifying evidence. 

Eligible Costs:
In general, tax-exempt financing may be used for the construction or acquisition of land and buildings, and for the purchase of equipment, furniture, fixtures or leasehold improvements. Certain closing and issuance costs can also be financed in the bond amount.

Bond Amounts:

There is no maximum limit on the dollar amount of bonds which can be issued on behalf of 501(c)3 organizations. Because, however, of the initial transaction costs associated with this type of financing, it is typically not advantageous to issue bonds for projects which are below $1,000,000 in size.

Fees:

• Application fee of $1,000
• Annual fee of one-tenth of one-percent of the outstanding principal amount of the bond, with a maximum annual fee of $250,000.