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April 03, 2024

Equipment Financing Through CHEFA EasyLoan Program

Earlier this month our featured article in CHEFA Insights highlighting our Equipment Financing Program inadvertently omitted TD Equipment Financing as one of the commercial banks that we have worked with. Our sincerest apologies to Lawrence Wall, Regional Manager, and his team at TD. Below is the revised article including TD Equipment Financing.

One of the many challenges CFOs face is helping their institutions acquire the equipment necessary to deliver their services in a cost-effective manner. This requires selecting the best manufacturer, ensuring that manufacturer has a good service/maintenance network in the area, and how best to pay for the equipment—whether that’s tax-exempt loans, cash, lines of credit or bonds.

CHEFA provides a tax-exempt financing alternative (“EasyLoan Program”) for the purchase of capital equipment and associated improvements. CHEFA’s EasyLoan Program utilizes a secured equipment loan structure where the loan is privately placed with a commercial lender, which will loan the money, through the Authority, to the institution, and take a lien on the equipment and other financed improvements as collateral.

Eligible equipment includes, but is not limited to:

  • Medical, diagnostic and laboratory equipment
  • Computer networks and equipment
  • Telecommunications equipment
  • Vehicles
  • Energy management systems

Renovations associated with equipment installations may be financed as part of the project as long as these expenses do not exceed 25% of the overall financing amount. The term of the loan cannot exceed the useful life of the assets financed.

The program features an abridged application process, standardized loan documentation and expedited closing (usually within 90 -120 days), and reduced financing fees compared to traditional bond financing. Loan sizes up to $10.0 million do not need CHEFA Board approval.

One of the unique features of the program is utilizing a Master Financing Agreement, which provides for future financings to be easily added, resulting in further reduced financing fees. In addition, the equipment is exempt from property taxes unlike a traditional lease.

CHEFA works with a number of commercial lenders, including TD Equipment Financing, Bank of America, Keybank, M&T Bank, and Webster Public Finance Corp. CHEFA and our partners are committed to your success and look forward to working with you to address the equipment needs of your organization.

For additional information please contact:

Michael Morris
Managing Director, Client Services