Benefits to Nonprofits

• Lower interest rate loans
• More funds available for operations or endowment
• Earlier construction
• Less dependence on grants and other financing
• Efficient use of donor gifts
• Cash management flexibility

Typical savings

For smaller projects using STEP, savings are typically one to two percentage points below market rates. The interest rates are set by lenders and will vary among lending institutions.  For larger projects, when borrowing typically exceeds  $3-5 million, investments banks market the bonds to retail and institutional investors.  In these cases interest rates are  lower than for smaller projects, but the financing process is more complex and associated fees are larger.  The borrower can still realize significant savings.

Program cost

Please contact us to discuss the Commission's fees for issuing bonds.

Contact Us Early in the Process

To obtain the most benefit from this program it helps to contact us as early as possible in the financing planning process. We often start working with nonprofits during the preliminary capital campaign planning stage.  Many decisions made early on will affect your fundraising and financing flexibility.

This page was modified on 06/23/2006.