Governor Office Building
200 Madison Street
P.O. Box 567
Jefferson City, MO 65102
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
- 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:
- recreational facilities
- other facilities for 501(c)(3) not for profit entities
- 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