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Frequently Asked Questions
What is RIHEBC?
Established by Rhode Island General Assembly in 1966, RIHEBC ("the Corporation") was created to provide non-profit educational and healthcare providers with access to low cost affordable capital financing for their capital projects through the sale of tax-exempt bonds.
How long does the process take and what does it cost? For qualified borrower the process can take between 90-120 days. Because it is tax-exempt financing the initial cost are higher than a commercial loan, however in most cases the difference is recouped within two years due to the savings in interest expense.
Why is tax-free financing an attractive option for the non-profit borrower? The interest rate on tax-exempt financing is normally lower then commercial financing and it can be for a longer term making it an attractive alternative to commercial borrowing.
What kinds of institutions can apply to the Corporation for tax-exempt financing?
Are the requirements for refinancing the same as for new financing? The conditions are the same, yet the procedure may vary depending on the nature of the project.
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