Frequently Asked Questions
From Municipalities
A: We have access to multiple lenders and there is no cost to you to utilize our service. Government lending is a specialty that has taken us years to develop. We hope our expertise will help source the right funding for your need.
A: We do not have limits. Some of our partners will go up to $5mm and beyond for the right situation.
A: A municipal lease, also known as a lease-purchase agreement, is the most common type of equipment financing product for U.S. government entities. Characteristics of a Municipal Lease are:
(1) the obligator is a U.S. state, territory, or district thereof
(2) the interest component of payments made is excludable from gross income for federal tax purposes
(3) in most jurisdictions “debt” is not created for state law purposes
A: Lessee must be a U.S. state, territory or district (or political subdivision thereof). Political subdivisions include cities, towns, and other municipalities as well as other state and local entities “which have a substantial amount of sovereign powers”. Sovereign powers include taxation, eminent domain, and police power. Such entities may include counties, school districts, or fire districts but may differ from state to state.
Volunteer fire departments are treated as a political subdivision under most circumstances. Note: under IRS code at least 95% of net proceeds must be used for the acquisition, construction, reconstruction, or improvement of a firehouse or firetruck to be used by the organization.
Certain 501c(3) corporations can also be eligible. Check with us to see if your organization qualifies.