The Portage County Port Authority (PCPA) has an agreement with the Development Finance Authority of Summit County to provide financing for projects within Portage County. Financing options include Fixed-Rate Bond Fund Finance and Off-Balance Sheet Financing for both public and private projects. Some projects may qualify for tax exempt bond financing.
Fixed-Rate Financing Program (Bond Fund)
- The Development Finance Authority of Summit County Bond Reserve Fund offers long-term, fixed-interest-rate financing for qualified industrial, commercial and public projects.
- Projects from $1 to $6 million; expansion or construction of new facilities in Summit County and Northeast Ohio.
- Fixed interest rate based on taxable or tax-exempt bond rate at time of sale.
Financing for credit-worthy small and medium-sized companies and non-profit agencies.
- Sales tax exemption for all construction and building materials.
- The $5 million Bond Reserve Fund has an investment-grade credit rating of BBB+ by Fitch IBCA.
The Port Authority offers lease financing to qualified borrowers. Projects must be new construction or conversion of existing facilities purchased for the project by the SCPA, which acts as the lessor.
The loan, a low-cost, long-term financing alternative, can be structured as fixed or floating rate and has a simplified closing process. The lessee maintains total control of the property, from design to operation, and can deduct depreciation from its federal income tax as if it owned the building.
- Provides flexibility: Can be structured according to the nature of the project and the goals of the lessee.
- Improves balance sheet ratios: Lease financing does not appear on the lessee’s books (according to FASB 13 Rules).
- Provides significant sales tax savings: All construction and building materials are tax-exempt.
- Enables lessee to deduct lease payments: Reduces annual occupancy cost because lease/rent expense is a business cost deduction.
- May exempt interest on bonds from state tax: Exemption reduces lease cost. Enables lessee to capture any upside appreciation of value.
The Port Authority provides conduit financing agreements to support community development projects. These agreements offer long-term financing solutions for government and private non-profit community development projects:
- Stadiums & sports facilities
- Art and cultural facilities
- Convention and recreation centers
- Historic preservation facilities
- Community centers
Port Authority financing offers 501(c)3 organizations substantial benefits:
- Tax-exempt interest rates are on average one-third lower than conventional bank interest rates.
- Conduit financing bridges the gap between construction costs and receipt of pledged funds, allowing construction to begin early.
Port Authority Financing Application
Get your financing now! Download our Port Authority Financing Application and then email it to us when it’s ready.