The Authority provides a tax-exempt financing alternative to expensive taxable vendor or commercial financing for the purchase of capital equipment and associated improvements.
The program features an abridged application process, standardized loan documentation, and reduced financing fees compared to a traditional bond financing. Debt issued through this program is secured by the assets financed and the issue is privately placed with a lending company through a competitive bid process.
The EasyLoan Program is available to eligible not-for-profit, tax-exempt organizations for which the Authority currently has authorization to issue bonds. This includes healthcare organizations, educational institutions, and to a limited extent other nonprofit organizations qualified under Section 501(c)(3) of the Internal Revenue Code.
An institution under this program may finance purchases from $250,000 to $10 million for terms ranging from five to ten years. The maturity of the loan will be determined by the useful life of the equipment financed and/or by the investor (the Lessor).
Typically, the larger the amount to be financed, the more investor interest will be generated. Attracting as many investors as possible will potentially result in more favorable interest rates and financing terms.
Eligible equipment includes, but is not limited to, the following:
Renovations associated with equipment installation may be financed as part of the project as long as these expenses do not exceed 25% of the overall financing amount.
The Authority charges a one-time fee of 0.10% of the amount to be financed, and its Bond Counsel fee is $12,500. The Financial Advisor fee is $7,500.
The EasyLoan Program will use a secured equipment loan structure. Under this structure, the commercial lender will loan the money, through the Authority, to the institution, and take a lien on the equipment and other financed improvements as collateral.
Payments are made by the institution directly to the Lender during the term of the loan. Upon full payment of the loan, the institution becomes the owner of the equipment for the sum of one dollar.
The timeline from submission of the application to the closing of the loan is as follows:
| Review of application | Week 1 |
| Review by Internal Credit Committee | Week 2 |
| Submission of Bid Package | Week 2 |
| Review of Bid Proposals | Week 4 |
| Final Approval by Lender | Weeks 5-6 |
| Distribution of Documents | Week 7 |
| Institution's Approval Resolution | Week 8 |
| TEFRA Hearing | Week 9 |
| Closing | Week 10 |
Once the application is received, the Authority's Financial Advisor will assemble and distribute a bid package to approximately 20 potential investors. The bid package consists of information about the institution, including financial and statistical data, the equipment to be financed, the term of loan and timeline for the financing.
We typically allow seven to ten business days for the investors to submit their proposals. Once all proposals are received, the Authority's Financial Advisor will compile an analysis detailing the results of the bid and review the results with the institution to select the investor that offers the most favorable interest rate and terms.
Once an investor is selected, the investor will conduct a final credit approval of the institution before issuing a final commitment. This usually takes between ten and fourteen business days.
The institution will be required to complete an application which requires the following:
For loan transactions under $5 million, Authority staff is authorized to proceed without approval from its Board of Directors. Any transaction over $5 million is subject to review by the Board, which typically meets every fourth Tuesday of the month. All transactions will be reviewed by the Authority's internal credit committee prior to submission of the bid package to investors or to the Authority's Board.
