Providence Capital’s equipment and project financing services for State of California departments and agencies offer solutions that will enable you to choose a financing method that is compatible with your objectives and budgetary requirements.  The financing plans cover a variety of equipment and project financing needs, and will help you to complete your objectives quickly and inexpensively.

Type of lease-financings offered through the GS $Mart® Program:

Alpha Plan:  Tax-Exempt Lease Purchase Financing (most commonly used)
Financings under the Alpha Plan are generally structured as an installment loan with no prepayment penalties.  This form of financing is suitable for equipment acquisitions or capital projects that the agency 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 the State 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 agency’s budget requirements.

Beta Plan:  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. Financings under the Beta Plan 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 the State 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 State, but are calculated with non-tax-exempt, or taxable, interest rates.

Lease $Mart®:  Equipment Lease
Lease $Mart financings are structured as a finance lease which provides for the periodic use or rental of equipment over time. This type of lease enables an agency to easily return an asset to the Lessor at the end of a financing contract; however, it does provide an option to purchase the equipment at the end of a financing term for nominal consideration, usually $1.00, and the lease may be renewed for additional periods.