Providence Capital's tax-exempt financing services for CSU offer solutions that will enable you to choose a financing method that is compatible with your objectives and budgetary requirements. Our Plans cover a variety of equipment and project financing needs, and will help you to complete your objectives quickly and inexpensively.
Type of financing offered through the CSU Tax Exempt Leasing Program:
Tax-Exempt Installment Purchase or Lease-Purchase Financing
Lease purchase financings are generally structured as an installment loan with no prepayment penalties. This form of financing is suitable for equipment acquisitions or capital projects that a campus intends to own at the end of a financing term. Lease payments are divided into principal and interest components; with payments made on a monthly, quarterly, semi-annual, or annual basis. Title passes to CSU upon acceptance of the project, and the purchase price of the asset is amortized over the term of the financing contract. Financing Terms usually range from two to seven years depending on the asset's useful life and the campus' budget requirements.
An additional financing plan that may be suitable for CSU Campuses (depending upon the circumstance):
Non-Tax-Exempt Lease-Purchase Financing
This form of financing is suitable for equipment acquisitions or capital projects that: (a) provide more than 10% of the benefit of use to a non-governmental entity; or (b) have 10% or more of the funds that repay the obligation contributed by federal sources or a non-governmental entity. Non-tax-exempt financings are generally structured as an installment loan with no prepayment penalties. Lease payments are divided into principal and interest components; with payments made on a monthly, quarterly, semi-annual, or annual basis. Financing Terms usually range from two to seven years depending on the asset's useful life and the agency's budget requirements. Title passes to CSU upon acceptance of the project, and the purchase price of the asset is amortized over the term of the financing contract. Due to the nature of the benefits of use derived from the asset, and the source(s) of repayment, financings under the Beta Plan reflect the credit strength of the CSU, but are calculated with non-tax-exempt, or taxable, interest rates.
