October 2, 2015
Cost Effective Financing Program through the Public Finance Authority
The Wisconsin Counties Association is pleased to announce a cost-effective financing program for land, building and new equipment acquisitions and refinancings through the Public Finance Authority (PFA).
Tax exempt bonds are a financing mechanism that typically offer interest rates 1.5% to 2.5% below conventional interest rates. However, the high up-front costs associated with tax-exempt bond issues are cost-prohibitive for issues of less than $5 million.
PFA explored alternative programs to assist Wisconsin nonprofits, manufacturers and other eligible borrowers access to tax-exempt financing in a continued effort to support economic development in Wisconsin.
Wisconsin borrowers now have access to a small bond issue program that will no longer have a separate issuance fee, ongoing administrative fee or issuer’s counsel fee. Instead the small bond issue program will have a flat issuance fee of 1% of the bond amount and there will be no ongoing administration fees.
In addition to significant cost savings, there are several other benefits to consider.
- Efficient: Board meets bi-weekly via teleconference with the ability to hold special meetings if necessary.
- Dedicated: Experienced PFA staff to guide you through the process.
- Local Review: Wisconsin-based Issuer Counsel (von Briesen and Roper, s.c.).
- Local Approval: PFA requires local county and municipality approval for all new capital projects in Wisconsin.
- Oversight: The Wisconsin Counties Association sponsorship and oversight of the program.
Created in 2010 the PFA is a political subdivision of the State of Wisconsin established to provide economic development tools in Wisconsin and nationwide.
PFA is sponsored by the Wisconsin Counties Association, the League of Wisconsin Municipalities, the National Association of Counties and the National League of Cities.
For more information about the PFA or the small bond issue program, contact Phil Letendre, Program Manager with the PFA at (888) 508-7188 xt 260 or firstname.lastname@example.org or visit www.pfauthority.org