Advoca Capital specializes in Tax-Exempt Bond financing for non-profit/501(c)(3) organizations. Tax-Exempt Bonds can be issued for capital projects (such as building, land acquisition, renovations and equipment) and at least 95% of the Bond proceeds must be used in furtherance of the non-profit borrower’s exempt purpose.
Capital expenditures that can be financed with tax-exempt bonds…
- New Construction or Acquisition of the 501(c)(3) Facility
- Renovation to the Existing Facility
- Purchase of Equipment
In addition to the capital expenditures, the bond proceeds can finance…
- Capitalized interest during construction
- Soft costs related to the project
- Bond Related expenses (up to 2% of Bond proceeds)
A sample of borrowers utilizing tax exempt bonds include…
- Colleges and universities
- Health care providers
- Community organizations such as YMCAs and goodwill industries
- Religious-affilated schools and Community facilities
The Advoca Capital program utilizes a straightforward application and closing procedure and is
funded by the issuance of the Tax Exempt Bonds.
- Engage Advoca Capital as Advisor and Placement Agent.
- Advoca Capital undertakes an initial credit evaluation to determine if the borrower qualifies for the program.
- Upon qualification, Advoca Capital sends the underwriting information to a group of acceptable Letter of Credit Banks.
- Upon approval of the application by a Letter of Credit Bank, a Commitment Letter is issued to the borrower detailing the required security elements, operative loan covenants and other requirements and contingencies necessary for loan closing.
- Borrower’s counsel reviews the Commitment Letter.
- Borrower executes and returns Commitment Letter, along with any commitment fees stipulated in the Commitment Letter to Advoca Capital.
- Bond documents are generated and distributed to the financing team.
- Borrowers generally can be funded within 45 to 60 days following execution of the Commitment Letter.
- Advoca assists the borrower in securing interim financing if the borrower has immediate funding needs.
