CalPFA’s Nonprofit Finance Program provides access to tax-exempt bond financing for eligible 501(c)(3) nonprofit organizations. A qualified borrower can typically finance a project at a lower interest rate than available through conventional financing because the interest paid to bondholders is exempt from federal income tax.
Any nonprofit organization designated as a 501(c)(3) by the Internal Revenue Service, including:
Nonprofit bonds may be used for capital projects including the construction, acquisition, renovation or rehabilitation of facilities and equipment. Bond proceeds may also be used to refinance existing tax-exempt debt, and in certain circumstances, conventional debt.
For more information regarding CalPFA’s Nonprofit Finance Program or project eligibility, please contact a CalPFA Program Administrator.