This page is intended to serve as a basic primer of some financing options. For the latest in options contact a lender or mortgage broker. New lending programs are becoming more available to meet the needs of most project owners. There are essentially two types of financing, equity and debt. I will list some of the types of equity and debt financing below.
Some facilities use a combination of both equity and debt.
Debt financing is financing through lenders where creditors issue debt. Equity financing may have equity capital holders who own the facility, often allows outside investors to assume partial ownership, may allow for the facility sponsor to buy back ownership interest in the future and may be through a partnership or condominium structure. This type of financing is usually done by nonprofit organizations. The sponsor forms a nonprofit or for profit subsidiary. The subsidiary develops and raises the capital to build the facility.