Education Bond

Description

The Eastern Illinois Economic Development Authority (EIEDA) acts as the issuer of the bonds, passing its DOUBLE Tax-Exempt status on to a public school district to finance a building project or other capital project. The project can include the acquisition of fixed assets including land, buildings and equipment. Because the interest on the bonds is not subject to state or federal income taxes, investors and lenders require a lower interest rate to achieve an equivalent after-tax return. Therefore, the borrower receives a preferential interest rate, generating substantial savings.

Eligibility

Fund Usage

Funds can be used to build a facility, acquire necessary land, new equipment, technology, busses, land for future schools, portable buildings, etc.

60 day notice

Funds expended prior to sixty days before receiving initial approval from EIEDA may not be eligible.

Capital improvements

The capital improvements must take place in the territory of EIEDA in the counties of Ford, Iroquois, Piatt, Champaign, Vermillion, Douglas, Moultrie, Shelby, Coles, and Edgar.

Benefits

Lower Interest Rate

An EIEDA Education Bond is exempt from state and federal income taxes, making it an attractive investment for the bondholder. The interest rate available on these bonds is far lower than conventional financing, and you can expect your interest savings to range from 1% – 3% percent lower than a conventional loan.

100% Financing

Finance up to 100% of the project cost – contingent upon meeting credit standards of a local bank backing the bond.

Smooth Process

EIEDA has been described as a “Nimble Issuer” because of its flexible guidelines and an expedited approval process. We can assemble a team of Bond specialists who have a thorough understanding of all the legal and financial aspects of this type of transaction. We'll work closely with you every step of the way, answering your questions, helping you avoid pitfalls, and making sure you get the financing that's right for you.
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COntact

  • +1 (866) 325-7525
  • wribley@eieda.com

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Bond Programs

EIEDA

Eastern Illinois Economic Development Authority

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