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Bank Qualified Bonds
Tax-exempt bonds used to finance facilities owned by a 501(c)(3) organization are typically issued by the Industrial Development Authority of St. Louis County (IDA). State statutes have precluded the IDA from issuing a special type of tax-exempt bonds - bank qualified bonds (BQBs). Recently the IDA has partnered with St. Louis County Port Authority to provide qualified 501(c)(3) organizations access to bank qualified bonds.
Business Benefits of a Bank-Qualified Bond
- Like the tax-exempt bonds described above, bank qualified bonds significantly lower interest rates due to the tax-exempt status of interest to the purchaser of the bonds.
- BQBs provide further reduction in the bond interest rate -- in some cases as much as 100 basis points! This reduction is due to a unique feature of BQBs -- the carrying costs of the bonds are tax deductible to the participating bank.
For more information, contact Rick Palank at 314.615.7667 or rpalank@slcec.com.
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Fee Schedule - Bank Qualified Bonds
