Pub. 6 2016-2017 Issue 5

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S March • April 2017 17 Support Manufacturers and Nonprofits with CHFA Mini-Bond Program Reduced Fees and Tax-exempt Rates Made Available through CHFA Mini-Bonds BY STEVE JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR, COLORADO HOUSING AND FINANCE AUTHORITY (CHFA) C olorado’s manufacturing and nonprofit industries are both unique contributors to our local communities and regional economy. To grow businesses and organiza- tions in these sectors, CHFA offers bond programs, benefitting both banks and borrowers. Cost-savings benefits of CHFA’s traditional tax exempt bond program are offered to smaller manufacturers and 501(c)(3) nonprofit organiza- tions through CHFA’s Mini-Bond program. For qualified man - ufacturers and nonprofits, financing is capped at $4 million. CHFA’s Mini-Bond program caps professional fees and provides lenders access to tax exempt rates, which offers borrowers affordable financing and overall project feasibility. Financing terms are set between the bank and the borrower and CHFA serves as the conduit bond issuer. Bond proceeds may be used to finance new construction, facility expansion, or equipment purchases. “Lenders who participate in CHFA’s Mini-Bond program are able to distinguish themselves in the market and ul- timately become more competitive,” said Masouda Omar, CHFA Community Development Lending Manager. “This program expands the options you are able to offer in a way that is different than any other bond program in the state.” With rising interest rates, CHFA’s Mini-Bond program can save borrowers typically 2 to 3 percent below conventional tax- able financing rates. Furthermore, the program’s application process is noncompetitive and streamlined, whichprovides both investors and borrowers additional benefits. More than $14 million in financing has been leveraged as a result of CHFA’s Mini-Bind program. Businesses and nonprofits in several regions of the state have participated including those in Greeley, Loveland, Steamboat Springs, Denver, Grand Junc- tion,WoodlandPark, andPueblo. CHFAMini-Bondparticipants support a combined total of 1,404 jobs. n To learn more, and to access CHFA’s Mini-Bond program, please visit CHFA’s website at chfainfo.com/business-lending , or CHFA Senior Community Development Loan Officer, Wyatt Jones, at 303.297.7341