SLCEC Home Page > Services > Business Finance > Loans and Bonds > Bond Programs > Tax-Exempt Bond - 501(c)(3)
Tax-Exempt Bond Program for 501(c)(3) Organizations
For 501(c)(3) organizations, tax-exempt bonds may be used to finance the cost of capital items including land, building, fixtures, machinery and equipment (new or used), computer systems, and telephone and communication systems. Tax-exempt bonds can be used to refinance existing taxable debt and issuance expenses of up to two percent of the net proceeds of the issue.
Business Benefits of a Tax-Exempt Bond for 501(c)(3) Organizations
- Few tax limits, no volume cap allocation needed or capital expenditure limits
- Project size can range from $2 million to $100 million
- Tax-exempt bonds typically are the lowest-cost form of financing available
- Interest rate savings typically 1.5 percent to 2 percent compared to conventional financing
For complete information about tax-exempt bonds for 501(c)(3) organizations click here.
Tax Exempt Bond Application
Fee Schedule - 501(c)(3)
