Low-cost, tax-exempt financing to nonprofit public benefit corporations for acquisitions and/or improvements of facilities and capital assets. The corporation must have received a letter from the Internal Revenue Service stating that it qualifies under Section 501(c)(3) of the Internal Revenue Code.
Who Can Apply
Typical examples of nonprofit corporations include cultural facilities such as museums, libraries, aquariums, and historic preservation; educational facilities such as universities, colleges and schools; charitable organizations and foundations; recreational facilities such as community centers, local sports facilities and YMCAs; research institutes and centers; organizations that promote social benefits such as the prevention of cruelty to children and animals.
Capital expenditures, refinancing prior debt (under certain circumstances), reimbursing prior expenditures (under certain conditions), (limited) working capital, costs of issuance, capitalized interest and debt service reserve funds.
Credit Standards Bonds issued by the IBank must meet established minimum credit rating standards, based on the credit of the applicant or a credit enhancement from a bank, insurance company or other guarantor acceptable to the IBank.
Eligible uses of Bond Proceeds Proceeds must create public benefits in the community where the project is located by enhancing the economic, social, or cultural quality of life for local residents.
The project must be located in California and be consistent with any existing local or regional comprehensive plan.
Benefits of 501(c)(3) Bond Financing
- Low interest rates
- Long-term financing
- Flexible terms
- Allows borrower to retain endowments and accumulated funds
- Allows project to be completed now and repaid from future revenues
How to Apply
Applications are continuously accepted and are available below. We encourage you to call us before applying. IBank representatives provide technical assistance and work with you throughout the process. IBank’s Board of Directors normally meets each month to consider approval of applications received prior to the meeting date. Check here for board meeting deadlines.
Request of Post-Bond Issuance Actions – Complete this request form if you wish for the IBank to take post-bond issuance actions in connection with outstanding IBank bonds. Such actions include, but are not limited to, agreement modifications, Letter of Credit substitutions, mode conversions, redemption, or agent substitutions.
For more information contact:
Fariba Khoie, Bond Program Manager
California Infrastructure and Economic Development Bank (IBank)
Mailing Address: P.O. Box 2830, Sacramento, CA 95812-2830
Telephone: (916) 341-6600
Disclaimer: Nothing contained herein should be construed or relied upon as legal advice. Instead, this information is intended to serve as an overview of the general subject of the use of tax-exempt bonds by nonprofit corporations, from which better-informed requests for advice, both legal and financial, can be formulated.