As a longstanding lender, Key has helped municipalities, not-for-profit providers and manufacturing businesses realize substantial cost savings for years. By structuring tax-exempt lease purchases and tax-exempt bonds to meet your unique requirements, we help you acquire the technology and assets you need to help our shared communities thrive.
Tax-exempt financing for municipalities
Key Government Finance has valuable tax-exempt experience and relationships with governmental issuers nationwide. States and possessions of the United States & District of Columbia that embody one of three sovereign powers (taxation, eminent domain, police power) include:
Our tax-exempt financing structures provide our state and local government customers the following distinct advantages:
Tax-exempt financing for 501c3 entities
We provide not-for-profit schools and hospitals with the tools required to structure these transactions, quickly and cost-effectively. Key Government Finance offers low tax-exempt rates as well as the following benefits to help this sector meet their budget requirements and stay competitive:
Under Section 145 of the Internal Revenue Code, borrowing is facilitated through a governmental issuer—an entity such as a state authority, county or city.
Tax-exempt financing for manufacturers
Manufacturers look to Key to help secure funding for real estate, new equipment used in the manufacturing process and acquisition of existing facilities through Industrial Revenue Bonds (IRBs). In addition to low financing costs and no letter-of-credit requirement. The primary advantages we offer this niche of corporate clients include:
Issued by designated local industrial development boards (IDBs) or other issuers authorized by state law, IDBs and IRBs are financing instruments.
The interest paid on the bonds is exempt from both federal and state income tax; therefore tax-exempt IDBs and IRBs offer lower rates than conventional sources. And because we underwrite tax-exempt financing for our own account, Key Government Finance is able to respond to your needs in a timely and efficient manner.
How the process works
Equipment we finance
KEF also provides equipment financing solutions to our customers through our partnerships with manufacturers, dealers and resellers.
KEF also offers tailored equipment financing solutions directly to our government customers, helping them to reduce costs and increase efficiencies.