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.
DFA partners with the Cleveland International Fund (CiF)
Since our inception in 2000 we have worked to provide diverse financing services to our communities. With that goal in mind, in 2014, the DFA completed a cooperative agreement with the Cleveland International Fund to bring the EB-5 financing program to Summit County. The Cleveland International Fund’s unique funding program enables foreign entrepreneurs to invest in U.S. projects in exchange for immigration in to the United States. The program, EB-5 Immigrant Investment, was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors and is administered by U.S. Citizenship and Immigration Services. In Cleveland, CiF has provided financing for the mixed use Flats East Bank Project. CiF successfully retained 90 foreign investors totaling $45,000,000 of financing into the capital stack which led to the creation of over 2,400 jobs. CiF, again through the EB-5 program, identified 120 investors which provided $60 million in financing for the construction of new, state-of the- art facilities, the Ahuja Medical Center and the Seidman Cancer Center. In December of 2013, CiF was selected over 400 other entities as the EB-5 Regional Center of the Year from EB5NewsBlog.org by Artisan Business Group, Inc. The Development Finance Authority of Summit County (DFA) has entered into an agreement with CiF to take advantage of attracting funds for qualifying projects within Summit County.
Property Assessed Clean Energy program (PACE)
The Development Finance Authority’s Property Assessed Clean Energy (PACE) financing can help improve multi-tenant properties. The DFA energy efficiency PACE program can provide financing for multi-tenant complexes, which allow property owners to make significant building upgrades resulting in better indoor air quality, improved tenant comfort and reduced energy costs for owners and their tenants.
Improvements can include HVAC insulation enhancements, electrical upgrades and 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) over 15 years via a unique financing tool called Property Assessed Clean Energy (PACE) financing. PACE 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.