Taxable Revenue Bonds

Description: QCREDA issues taxable revenue bonds for commercial, industrial, transportation and recreational projects including warehouse distribution facilities, office buildings, shopping centers, etc. which are not eligible for tax-exempt financing. Proceeds can be used to purchase land, buildings and equipment and/or to construct new or renovate existing facilities.

Benefits: The benefits of Taxable Revenue Bonds include:

State Income Tax Exemption – QCREDA Bonds possess the state income tax exemption. This is generally worth 10-25 basis points or one tenth to one quarter of a percent savings.

Long term – Maturity of the bonds is flexible and can range from ten to thirty years.

Favorable Interest Rate – Rates are generally 1.0% to 1.5% below Prime Rate with Moral Obligation Credit Enhancement.

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.

Eligibility: Any commercial, industrial, transportation and recreational project including warehouse distribution facilities, office buildings, shopping centers, etc. which are not eligible for federal tax-exempt financing. Taxable Revenue 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 80 basis points is due at closing along with an issuer counsel fee that ranges between $5,000-7,000 depending on the complexity of the bond. Costs of issuance funded from tax-exempt private activity bond proceeds are limited to 2.0%.