In an article published on Oct. 19, 2016 by the Nashville Business Journal, Josh Ehrenfeld and Brian Watson provide guidance on tax-exempt and taxable bond financing options that nonprofit organizations should be utilizing. Bond financing offers an alternative way for nonprofits to obtain long-term financing for capital projects. Ehrenfeld and Watson explain that the benefits of bond financing include lower interest rates, resulting in payments substantially less than those on conventional financing, and, unlike traditional construction loans, bonds generally do not require subsequent conversion to permanent financing. They also address that the first step for any organization considering the use of bond financing should be to consult with professionals well-versed in the process, such as lawyers and/or municipal advisers.

For the full article, subscribers to the Nashville Business Journal may click here.