Financing Programs

Structure, Fees & Timing

  • Bond Issuance Types: Public, Limited Public and Private
  • Size: $4M+
  • Term: 3-40 years
  • Fixed or Floating Rate
  • Fees: CHEFA One-time Fee (non-refundable): $5,000
  • Estimated Legal: $50K+
  • Timing: 8-12 weeks depending on complexity

Eligible Uses

  • Capital Projects
  • Including acquisition, construction, renovation, furniture, equipment, technology
  • Refinancing of outstanding debt
  • Cost of Issuance (maximum 2% of proceeds)
  • Capitalized Interest
  • Debt Service reserve

Ineligible Uses

  • Not more than 5% of bond proceeds may be used for private business use or activity unrelated to the nonprofit purpose
  • Working capital
  • Facilities with religious affiliation

Tax-Exempt Bond Financing

Step 1: Financing Request / Proposal
  • Borrower works with Underwriter to submit term sheet to CHEFA outlining their proposed project and needs
  • CHEFA can recommend an underwriter should an organization not have specific banking coverage
  • Review of project scope and determine eligibility for tax-exemption
  • Assembly of the transaction working group
Step 2: Diligence and Documentation
  • Completion of due diligence by CHEFA and Underwriter
  • Preparation and review of legal documentation
  • Public Hearing (TEFRA)
  • Borrower submits application and CHEFA fee
Step 3: Board Approvals
  • Number of approvals dependent on issuance type
  • Public offerings require a preliminary and final board approval
  • Private placements and direct bank purchases require a single board approval
Step 4: Marketing and Finalization of Documentation
  • Financing documents published and shared with investors for marketing purposes (if applicable)
  • Transaction summary submitted to the Governor of Connecticut for review and approval
Step 5: Closing and Funding
  • Bonds sold to Investors in either a private or public manner 
  • Funds available to Borrower 
Step 6: Post Issuance Compliance
  • CHEFA assists Borrowers in preserving tax-exempt status of the bonds 
  • This may include 
  • Arbitrage Rebate and Yield Restriction monitoring 
  • Qualified Use of Proceeds 
  • Continuing Disclosure