Non-Profit Bonds

Description: TRVDA issues bonds to Non-Profit Organizations qualified as 501(c)(3) tax exempt organizations. TRVDA is empowered to issue on behalf of Illinois non-profit corporations Tax-Exempt bonds for any purpose permitted under its empowering statutes. Statutes require that non-profit bonds must be issued for capital expenditures.

Benefits: The benefits of Non-Profit Bonds include:

  • Long Term – Maturity of the bonds is flexible and can range from ten to thirty years.
  • Low Interest Rate – Rates are generally 2.0% to 3.0% below Prime Rate. The interest rates are discounted to reflect double Tax-Exempt status. Rates range well below conventional financing.
  • 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: Non-profit bonds are subject to the restrictions set forth in the Code, such as the 2% cost of issuance limitation, the 10% reserve fund limitation and the 120% average useful life test. There is no requirement for equity; credit enhancers may make additional requirements. Non-Profit Bonds do not require volume cap.

Fees: A $2,000 non-refundable application fee is due when the application is submitted. Please make checks payable to the Tri-County River Valley Development Authority. An issuance fee of 40 basis points is due at closing.

Contact: For an application or additional information please contact Andrew Hamilton, Executive Director, Tri-County River Valley Development Authority (TRVDA), 456 Fulton Street, Suite 401, Peoria, IL 61602, Toll Free: 866-325-7525, Fax: 866-325-7569, email: andrewjhamilton@trvda.com.