Housing
501(c)(3) Bond Program
Description:
The Illinois Finance Authority helps non-profit, 501(c)(3) corporations secure
low-cost, tax-exempt financing for capital improvement projects through tax-exempt
revenue bonds.
Benefits:
Tax-exempt bond financing affords qualified non-profits the opportunity to
purchase capital equipment without depleting cash reserves or paying the
higher costs of traditional debt financing. Benefits of bond financing include:
- Favorable interest rates – considerably less than conventional
loans
- Long term financing
- Fixed or variable rate financing
- Up to 100 % financing
Type of Financing:
Tax-exempt financing may be used by non-profits for the acquisition, construction
or
renovation of real estate; the acquisition of machinery, equipment or other
fixed assets, or, in some cases, refinancing outstanding debt. The maturity
of the debt will generally match the useful lives of the assets financed.
Eligibility:
Any non-profit corporation with a 501(c)(3) designation from
the Internal Revenue Service may be eligible for financing. Projects
must be located in the State of Illinois. Final determination of
project eligibility is subject to a legal opinion from a recognized
municipal bond attorney.
Fee:
A non-refundable application fee is due when the application is submitted.
A closing fee based on the principal amount of bonds issued is paid to the
Authority at closing. The Authority does not charge an annual fee. In most
cases, applications can be reviewed by staff and considered by the Board
of Directors within 30 to 45 days of submission.
Contact:
Chicago office: 312.651.1300
Springfield office: 217.782.5792
Peoria office: 309.495.5959
Mt. Vernon office: 618.244.2424
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