We offer fixed rate/bond fund, conduit/non-bond fund, PACE program and tax credit financing arrangements for businesses in Summit County.
DFA Fixed-Rate Bond Fund Financing Program
The Development Finance Authority’s public-private partnerships can provide financing tailored to each project’s needs. DFA issues tax-exempt industrial revenue and taxable bonds underwritten with the Development Finance Authority’s BBB+ Bond rating. click here to view DFA Bond Rating. Loan’s are structured for 10-30 year terms. The borrower is responsible for service on the incurred debt.
DFA Lease Conduit Financing Program
The Development Finance Authority’s public-private partnerships can provide financing tailored to each project’s needs. DFA issues tax-exempt industrial revenue and taxable bonds underwritten by a commercial lender’s letter of credit. The borrower is responsible for service on the incurred debt. Companies can obtain a one-time exemption on all construction and materials used in a project.
New Markets Tax Credits Program
The New Markets Tax Credits Program was created in 2000 to provide an incentive for private sector investment in development projects and businesses located in economically distressed and low-income communities. NMTC’s provide a subsidy to either a qualified business or a real estate project, often secured as one of the last sources of capital to fill the final remaining financing gap. The project/business must be located in a qualified census tract as identified by the Community Development Financial Institutions (CDFI), an entity of the U. S. Department of the Treasury. These qualified census tracts are usually characterized by poverty greater than 20 percent or area median income that is 80 percent or less than state median income. In addition, the CDFI gives priority to applicants who commit to investing in areas of higher economic distress.
Property Assessed Clean Energy program (PACE)
The Development Finance Authority’s Property Assessed Clean Energy (PACE) financing is available to assist property owners finance energy efficient projects. PACE financing enables property owners to make significant building upgrades resulting in better indoor air quality, better work environment, and reduced energy costs for owners and their tenants.
PACE financed Improvements can include HVAC insulation enhancements, electrical upgrades, window and roof replacements that might save the owner 15-20 percent or more annually in energy consumption and costs. Proposed improvements can be financed through the DFA, or alternatively Northeast Ohio Public Energy Council (NOPEC) and other sources over 15 years via PACE, which allows the property owner to repay the energy efficiency improvements through a special assessment placed on the property. NOPEC has initiated a PACE revolving loan fund program to finance projects between $100,000 and $500,000. To learn more link to NOPEC.
PACE projects that exceed $1M may be eligible for the financing through the DFA Jobs & Investment Bond Fund. Conduit PACE financing is also possible. To learn more about how PACE might work for you, please contact the DFA directly or complete and submit an application.