Education Bonds

Description

The Upper Illinois River Valley Development Authority (UIRVDA) acts as the issuer of the bonds, passing its DOUBLE TAX-EXEMPT status on to a public or private school district to finance a building project or other capital project. The project can include the acquisition of fixed assets including land, buildings and equipment. Because the interest on the bonds is not subject to state or federal income taxes, investors and lenders require a lower interest rate to achieve an equivalent after-tax return. Therefore, the borrower receives a preferential interest rate, generating substantial savings.

university education illinois

Eligibility

  • Funds can be used to build a facility, acquire necessary land, new equipment, technology, busses, land for future schools, portable buildings, etc.

  • Funds expended prior to sixty days before receiving initial approval from UIRVDA may not be eligible.

  • The capital improvements must take place in the territory of UIRVDA in the counties of Bureau, Grundy, Kane, Kendall, Lake, LaSalle, Marshall, McHenry and Putnam.

Benefits

  • An UIRVDA Education Bond is exempt from state and federal income taxes, making it an attractive investment for the bondholder. The interest rate available on these bonds is far lower than conventional financing, and the school district can expect your interest savings to range from 150 – 300 basis points lower than a conventional loan.
  • Finance up to 100% of the project cost – contingent upon meeting credit standards of a local bank backing the bond.

 

  • UIRVDA has been described as a “Nimble Issuer” because of its flexible guidelines and an expedited approval process. We can assemble a team of Bond specialists who have a thorough understanding of all the legal and financial aspects of this type of transaction. We’ll work closely with you every step of the way, answering your questions, helping you avoid pitfalls, and making sure you get the financing that’s right for you.

application, request, ipad

Application

Interested school districts should complete a one-page application and submit a non-refundable application fee. There is an issuance fee paid at closing along with other professional costs. The cost of issuing a bond is generally more expensive than a conventional loan, but the total costs are usually recovered in the first year of interest savings and will continue through the life of the bond.

Apply Today