Tax-exempt, private placement bonds
Tax-exempt private activity bonds are tax-exempt securities issued by a governmental entity to finance qualified capital projects for use by private organizations, for example, non-profit organizations and commercial manufacturers. The governmental issuing authority acts as a conduit for the bond financing. The loan is made to the governmental entity and it, in turn, advances the funds to the private entity.

Because these bonds are issued through a governmental entity, the interest income earned by the bondholder is not subject to federal income tax. This allows savings to be passed on to the private organization in the form of a lower interest rate.

Operating lease
If you need equipment today but know: (a) you don't want to own it, (b) want the option to return it, (c) it will need to be updated, or (d) it won't be needed after three years, then a True Lease may be right for you. For certain asset types, we will take ownership and a residual position in the equipment. As a result, your monthly payments may be reduced due to the tax benefits that may be available to us as owner of the equipment. If you decide that you would like to purchase the equipment at the end of the lease term, you have the option to buy it at its fair market value.

Revenue-backed bonds
Based on an institutions revenue pledge, these bonds can be used for taxable or tax-exempt loans on a variety of projects and initiatives.

Taxable loans
Taxable loans may be a useful part of your financial solution, although they do not qualify for tax-exempt financing.

Variable Rate Demand Bonds (VRDBs)
Variable Rate Demand Bonds (VRDBs) are structured with a floating rate and supported with a GE line of credit.