With interest rates high, affordable borrowing becomes a priority. BerksIDA may be able to help you lower your costs with tax-exempt financing. Tax-exempt financing is a borrowing arrangement in which the lender pays no federal or state income tax on the interest earned. The lender passes along some of these savings to the borrower, resulting in lower borrowing costs.
This type of financing is typically associated with infrastructure projects, educational facilities, healthcare facilities, or other public initiatives, but a variety of business classifications can be eligible. On a typical 6% loan rate, tax exempt financing can currently save as much as 2% off the interest rate.
While the Application for Assistance gives more information on eligibility, the best way to know if your project qualifies for tax-exempt financing is to call BerksIDA. In addition to determining your eligibility, we can complete and submit your application for you and walk with you through the entire funding process.