Low-Interest Financing Available for Lehigh Valley Non-Profits
By Colin McEvoy on February 2, 2018
John Kingsley, Vice President of Finance for the Lehigh Valley Economic Development Corporation (LVEDC), recently distributed the below message regarding low-interest financing available for non-profit organizations in the Lehigh Valley:
Interest rates have risen substantially since the beginning of the year, with the benchmark 10 Year Treasury moving from 2.4 percent to 2.65 percent in just the last three weeks. If your organization is considering acquiring or constructing a new facility or making substantial renovations to an existing one, now is the time to secure the financing for this project.
Using tax exempt financing, charitable organizations, designated by the Internal Revenue Service as 501(c)3 corporations, can borrow money for their large capital projects at significantly lower rates of interest allowing for a 20 percent to 30 percent reduction in their cost of capital.
The Northampton County Industrial Development Authority and the Lehigh County Industrial Development Authority, public instrumentalities engaged in the promotion and financing of economic development in their respective Counties, can assist your non-profit organization in accessing tax exempt financing for your project.
By employing an industrial development authority, as a pass-through for conventional financing made available through a bank, we can provide the lender with certain tax advantages that can reduce your financing rate accordingly. We have recently seen tax exempt rates as low as 3.25% fixed for up to 10 years. Terms of the loan can be up to 120% of the useful life of the asset being financed.
If your non-profit corporation is considering a large capital project involving real estate, I encourage you to contact us to learn more about how you can benefit from using tax-exempt financing for your project.
Kingsley can be reached at (610) 266-0887 or via email at [email protected].
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