A Lower Cost Way of Financing Capital Projects

Although tax-exempt bonds are more commonly associated with financing governmental projects, the federal tax code actually allows certain private institutions ranging from 501(c)(3) nonprofit organizations (e.g., hospitals, colleges and universities, private and charter schools, affordable housing developments, museums, and other cultural institutions) to bioenergy and other manufacturers to finance capital projects with tax-exempt bonds, which have a lower interest rate than conventional taxable loans.

Read the full article by Emilie R. Ninan here.