ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, June 11, 1996 TAG: 9606110002
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
Nonprofit organizations throughout Virginia have access to tax-exempt funds as the result of a partnership among NationsBank Corp. and two Northern Virginia agencies.
The $100 million fund is called the Virginia 501(c)(3) Tax Exempt Pooled Loan Low Floater Program.
It is designed to provide low-cost, tax-exempt, variable-rate loans to all nonprofit organizations in the state that carry the Internal Revenue Service's 501(c)(3) designation. That is the tax-code section that covers tax-exempt organizations.
This program, operated by Charlotte, N.C.-based NationsBank, the Alexandria Industrial Development Authority and the Alexandria Economic Development Partnership will offer loans for new construction, renovations, equipment, information systems, refinancing of existing debt and other tax-exempt capital needs.
The pool will allow organizations needing to borrow between $300,000 and $1.5 million access to low-interest, tax-exempt financing. Larger organizations with larger loan requirements will be able to reduce legal and other transaction costs associated with tax-exempt financing. Tax-exempt financing means the lender does not pay income tax on proceeds from the loan and, therefore, is willing to offer better terms to the borrower.
The interest rate on these bonds will be at the NationsBank "low floater" rate, which has averaged 4.3 percent since January 1986.
LENGTH: Short : 36 lines KEYWORDS: 3DAby CNB