Not-for-profit
501(c)(3) Lease Program
Description:
The Illinois Finance Authority provides non-profit,
501(c)(3) corporations with low cost, tax-exempt lease financing
for acquisition of machinery, equipment or other fixed asset and
capital improvement projects.
Benefits:
Leasing affords qualified
non-profits the opportunity to purchase capital equipment
without depleting cash reserves or paying the high cost of
traditional debt financing.
Benefits of lease financing include:
- 100% tax-exempt financing
- Favorable interest rates – considerably less
than conventional loans
- Low transaction costs
Type of Financing:
Capital equipment and certain
real estate purchases are financed with a lease purchase agreement
between the not-for-profit corporation and the Illinois Finance
Authority. The maturity of the lease will generally match the useful
lives of the assets financed, up to 10 years.
Eligibility:
Any non-profit corporation with a 501(c)(3) designation
from the Internal Revenue Service may be eligible for financing.
Final determination of project eligibility is subject to a legal
opinion from a recognized municipal bond attorney. Projects must
be located in the State of Illinois. Maximum lease term is 10 years.
Fee:
A non-refundable application fee is due when the application
is submitted. A closing fee based on the face amount of the lease
is due at closing. 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
Applications:
*
The 501(c)(3) Lease Product uses the Not-for-Profit Bond Product
application
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