Other Financing Programs
Tax-Exempt Equipment Financing
CHEFA provides a tax-exempt financing alternative for the purchase of capital equipment and associated improvements. The program features an abridged application process, standardized loan documentation, and reduced financing fees compared to a traditional bond financing. The issue is privately placed with one lending company.
What Can Be Financed
Eligible equipment includes, but is not limited to, the following:
Medical, diagnostic & laboratory equipment
Telecommunications equipment
Furniture
Computer networks & equipment
Vehicles
Energy-management systems
CHEFA Community Development Corporation
“CHEFA CDC” or the “Corporation” mission is to provide financial assistance by serving and/or providing investment capital to qualified nonprofit organizations in low-income communities located in the State of Connecticut.
CHEFA CDC’s primary activity involves utilizing the federal New Markets Tax Credit Program to provide nonprofits affordable and flexible financing products to expand economic opportunities in Connecticut’s Low-Income Communities. CHEFA CDC will be the first Certified Community Development Entity dedicated to serve solely Connecticut’s nonprofits. CHEFA CDC’s ability to offer NMTC financing is contingent on its ability to receive an allocation or sub-allocation of NMTC.
NMTC Leveraged Financing
DESCRIPTION
Investments to finance capital projects
(Transactions > $4MM)
Investment in an individual project
BENEFITS
- Borrowers can acquire investment after 7 years
- NMTC Investment becomes a grant
Small Direct Loan Program
Loans to finance capital projects
Investment in the loan fund; not an individual project
BENEFITS
- Offers loans at below market rates
- Funders can achieve market rate of return