The following calculator provides an estimate of potential interest savings associated with an eligible tax exempt commercial loan from your bank.
The comparison assumes a bank tax exempt rate at 80% of the conventional rate, unchanged for the life of the loan. Actual interest rates and fixed
rate periods will likely vary, depending on the bank's approval.
Based upon prior similar loan requests, we have also outlined estimated costs associated with the tax exempt financing request in order to evaluate the merits of an eligible transaction. The below legal counsel estimate includes authority counsel, bond counsel, bank counsel, and borrower counsel. Bond counsel services are assumed to be provided by Barley Snyder, LLP, in order to include expected cost savings from Barley Snyder serving as both authority counsel and bond counsel. The borrower may choose different bond counsel if desired, but legal counsel costs may be higher than those estimated below.
In order for the project to receive final tax exempt financing approval, bond counsel must approve the eligibility of the project and an Industrial Development Authority must process the transaction. EDC Finance has partnered with Penn IDA to process requests for eligible Lancaster County projects. The below analysis does not represent a commitment to lend, but does attempt to estimate potential interest expense savings associated with an eligible tax exempt project. A borrower and its financial representatives need to make final determinations regarding actual savings to be expected through a tax exempt financing structure.
Based upon prior similar loan requests, we have also outlined estimated costs associated with the tax exempt financing request in order to evaluate the merits of an eligible transaction. The below legal counsel estimate includes authority counsel, bond counsel, bank counsel, and borrower counsel. Bond counsel services are assumed to be provided by Barley Snyder, LLP, in order to include expected cost savings from Barley Snyder serving as both authority counsel and bond counsel. The borrower may choose different bond counsel if desired, but legal counsel costs may be higher than those estimated below.
In order for the project to receive final tax exempt financing approval, bond counsel must approve the eligibility of the project and an Industrial Development Authority must process the transaction. EDC Finance has partnered with Penn IDA to process requests for eligible Lancaster County projects. The below analysis does not represent a commitment to lend, but does attempt to estimate potential interest expense savings associated with an eligible tax exempt project. A borrower and its financial representatives need to make final determinations regarding actual savings to be expected through a tax exempt financing structure.
| Conventional Bank Loan | Penn IDA Tax Exempt Bank Loan | |
|---|---|---|
| Loan Amount | ||
| Interest Rate | ||
| Term (Years) | ||
| Monthly Payment (Approx.) |
| Estimated Closing Costs | |
|---|---|
| IDA Application and Closing Fee (0.25% of loan) | |
| Legal Counsel Fee (estimate) | |
| Advertising Costs (estimate) | |
| Filing Costs (estimate) | |
| TOTAL CLOSING COSTS | |
| ANNUAL SERVICING FEE | |