MDFB Cultural Facility Revenue Bond Program
The Missouri Development Finance Board is the only governmental issuer of tax-exempt bonds for cultural facilities in the State of Missouri.
Tax-Exempt Bonds can be used to finance cultural facilities for charitable organizations which are qualified 501(c)(3) entities. Interest rates on tax-exempt bonds are significantly below conventional rates.
Money Can Be Applied To:
- land acquisition
- machinery and equipment
- building acquisition
- renovation
- construction
- architectural and engineering
- issuance cost (2%)
- land improvements
The bonds will be sold based upon credit supplied by the applicant. Generally most applicants will secure a letter of credit from a commercial bank. The higher the credit rating of the bank, the lower the bond interest rate. Once an application is received the Board will consider a resolution of intent at its next meeting. The applicant will also be responsible for selecting an underwriter, which will market the bonds-the Board has a list of underwriters in the state if needed.
A few examples of facilities that bonds may cover the cost of purchase, construction, expansion or improvements are:
- museums
- recreational facilities
- other facilities for 501(c)(3) not for profit entities
Benefits:
- below market interest rates
- short and long term
- flexible repayment schedules financing
- fixed or variable rates
- 100% financing
- statewide issuing authority for multiple site projects
