The State of Colorado's Private Activity Bond Program was established to provide industry with tax-exempt Private Activity Bonds to encourage private investment in creating and sustaining jobs, housing, health care and higher education. This program allocates bond issuance authority, not actual dollars. The bond issues are sponsored by local governments, but these governments are not liable in the event that the company defaults. These loans must be made through a Certified Development Company whose staff works with the applicant, a private-source lender, and the SBA to provide complete loan packaging service. This loan cannot be used for working capital.
Banks can sell the guaranteed portion of the loan to long-term investors in a secondary market.
This program is of particular interest to local banks. The primary criteria considered by SBA are character, credit and experience. Interest rates and terms are determined by the use of proceeds. This program is being highly utilized by several banks in the Greeley area. Inc This website and all of the individual page contents is protected by copyright.