Leasing for established Not for Profits (501(c)(3) registered)
Need to acquire much needed Section 38 Assets but the cost is just too high? Unfortunately you are not a public agency so you cannot avail yourself of their low cost financing... or can you?
If you are in need of assets with purchase price in excess of $750,000, then let us show you how a conduit lease might be just what your organization needs. The conduit lease allows use of a state or local public agency to “lend” you their ability to lease at rates comparable to those of the agency itself. Essentially, the conduit leases the asset on a non-recourse basis and then sub-leases to your organization at the same lease payments. The payments will then be your responsibility and will be payable to the investor bank that has invested in the lease.
The process is longer than most and requires more tax attorney work than a standard municipal lease, but... the rewards can make this additional effort and cost well worth the lower cost of long term, fixed capital.
We have over 20 years experience in conduit leases to Not for Profit organizations.Ask us how we can help.