Local
Government
Bond Program
Description:
The Local Government Bond program assists units of local
government, including school districts, in financing capital
improvement projects. IFA issues tax-exempt securities
in the municipal market and uses the proceeds of this sale
to purchase securities issued by a local government.
Highlights and Benefits:
The program provides local government units with the
opportunity to achieve interest cost savings and to
structure flexible loan repayment terms. Benefits of
issuing debt obligations through IFA include:
- Exemption from both federal and state income taxes
- Access to credit enhancement through a "tax intercept" mechanism
- Access to creative financing options
- Attentive finance professionals and quick turn-around
time
Type of Financing:
Borrowers may obtain fixed or variable-rate financing
through IFA.
Eligibility:
Any unit of government that is entitled to issue debt
obligations under Illinois law is permitted to issue its
debt obligations through the IFA. Qualified local government
units include counties, townships, municipalities, schools
and fire protection, sanitary, park, and other special
purpose districts.
Fee:
A non-refundable application fee is due when the
application is submitted. A 15 basis point closing fee,
with a minimum $2,500 and a maximum of $50,000 is
due when the bonds are issued.
Contact:
- Chicago office: 312.651.1300
- Springfield office: 217.782.5792
- Peoria office: 309.495.5959
- Mt. Vernon office: 618.244.2424
To get started, click here for a simplified application:
Full application:
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