CEDA 501(c)(3) Revenue Bond Financing for Non-Profits

Download Non-Profit Factsheet (PDF)

501(c)(3) revenue bond financing facilitates land and building acquisition, building construction, and refinancing of prior debt (for eligible capital projects). Benefits of this type of financing include below market interest rates, long-term financing, and it is available statewide without limitations to specific areas or communities.

A 501(c)(3) revenue bond is preferred over a conventional loan because the interest is tax exempt and therefore the interest rate is significantly lower than bank financing. Over a long period of time, this can mean substantial savings to the borrower, depending on the amount financed, and reduces total financing costs so more capital can be invested back into the organization’s operations.

CEDA issues 501(c)(3) revenue bonds to non-profit organizations for no maximum loan amount that meets the applicable criteria. Borrowers must be organized as a 501(c)(3) non-profit organization (e.g. private hospitals, private/charter schools, counseling centers, etc.) and an established and creditworthy business.

Why finance through CEDA? CEDA offers an experienced finance team and a single point of contact to the borrower throughout the lending process. CEDA’s 501(c)(3) revenue bond program does not incur an administrative burden or costs for local cities and counties. Financing can be structured through the issuance of bonds or a tax-exempt loan through a financial institution. Finally, CEDA is the only California JPA created with the mission of supporting statewide economic development—a focus on individual businesses that contributes to statewide prosperity.

Do you qualify?

Nonprofit Checklist

  • Are you a 501(c)(3)?
  • Are you building or purchasing land or a building or need to refinance prior debt?
  • Are the building occupants a 501(c)(3) or a public agency?

If you answered “yes” to these questions, please contact us for information on the next steps in the CEDA financing process.

Click here for an application for CEDA financing.

Click here for CEDA’s fee schedule for 501(c)(3) revenue bond financing for non-profits.

Further considerations:

  • Bond proceeds can be used to fund the acquisition/development of capital assets (i.e. real estate and equipment) that further the nonprofit goals of the organization.
  • Examples of potentially qualified nonprofit organizations:
    *Health clinics & health care facilities
    *Animal care facilities – SPCAs & Humane Societies
    *Cultural & arts facilities.