Tax-Exempt Bond Issuance

For facilities owned by Non-Profit Entities, SCC offers loans funded through the issuances of Tax Exempt Bonds. This execution involves the creation of Tax Exempt Bonds, which are then sold to investors, and generally will have with it a credit enhancement of sorts, that makes the bond marketable to investors. This credit facility is usually used to finance the construction of a new facility, or to fund the substantial rehabilitation of an existing facility. Typically, simultaneous to the issuance of these bonds, the bond issuance house will package the loan for placement with HUD, so that upon bond maturity, the repayment of the principal will be funded via the HUD takeout loan.