Commercial Paper Program

Able To Meet A Variety of Needs

• Short-term borrowing. With its small up-front costs, Commercial Paper is often a lower-cost alternative to municipal bonds and government-sponsored loans when financing equipment and projects in fewer than ten years.
  
  
• Interim financing. Planning to participate in the Pooled Bond Program or awaiting a Literary Loan or grant, but need funding now? The CP Program is a low-cost way of accessing interim financing.
  
  
• Long-term borrowing. Since loans may be amortized over the long term to reduce debt service payments, some local governments and institutions may choose to incorporate Commercial Paper into their overall long-term financing plan.  There’s no penalty for repaying your loan in full at any time as local needs or market conditions may warrant.

Low Cost Flexibility

• Tax-exempt interest rates are among the lowest available. Contact us for a rate quote.
  
  
• You pay interest only on the balance outstanding each month.
  
  
• Localities can take advantage of low, variable rates without being locked-in to a long-term commitment – you can repay your loan in full without penalty.
  
  
• Up-front costs are extremely low.
  
  
• Make interest-only payments or spread your repayment schedule over the long-term.
  
  
• Once you are participating in the program, you generally may add additional loan amounts without burdensome paperwork or approval processes.
  
  
• The program accepts a variety of security pledges.

Program Details

• Eligibility: Open to any city, county, town, or political subdivision and certain institutions that meet the program’s credit criteria.
  
  
• Minimum loan size: Approximately $500,000, which may include a combination of projects.
  
  
• Billing: Borrowers receive a monthly billing statement reflecting current rates.
  
  
• Projects: All project types are welcome, including both tax-exempt and taxable.