Description: WKRDA issues bonds to Non-Profit Organizations qualified as 501(c)(3) tax exempt organizations. WKRDA is empowered to issue on behalf of Illinois non-profit corporations Tax-Exempt bonds for any purpose permitted under its empowering statutes. Statutes require that non-profit bonds must be issued for capital expenditures.
Benefits: The benefits of Local Government Bonds include:
- Long term – Maturity of the bonds is flexible and can range from ten to thirty years.
- Low Interest Rate – Rates are generally 2.0% to 3.0% below Prime Rate. The interest rates are discounted to reflect Tax-Exempt status. Rates range well below conventional financing.
- Flexible Terms – Interest rates may be fixed or variable and can finance up to 100% of the eligible project costs.
- Favorable Terms – There is no fixed minimum job creation or capital investment requirements, although some jobs have to be created
- Quasi-State Guarantee – The bonds can receive a quasi-state guarantee (Moral Obligation) from the State of Illinois, which allows the borrower to attach to the State’s credit strength.
Eligibility: Non-profit bonds are subject to the restrictions set forth in the Code, such as the 2% cost of issuance limitation, the 10% reserve fund limitation and the 120% average useful life test. There is no requirement for equity; credit enhancers may make additional requirements. Non-Profit Bonds do not require volume cap.
Fees: A $2,000 non-refundable application fee is due when the application is submitted. An issuance fee of 60 basis points and Professional fee of 20 basis points due at closing plus the cost of Issuer’s legal counsel.
Contact: For an application or additional information please contact Andrew Hamilton, Executive Director, Will Kankakee Regional Development Authority (WKRDA), Two Rialto Square, 116 N. Chicago Street, Joliet, Illinois 60432, Tel: 815/723-9070.