Getting a loan for a new car is a pretty straight-forward process. But what if you’re with a unit of local government that needs to finance a fire truck or other equipment? That’s a specialized form of commercial lending, and it’s not always simple.
Public entities obtain financing via unique methods, since their source of income and their ability to save and spend are unique. Because of this, it takes a great deal of specialized knowledge and understanding to put together a beneficial financing package for a municipality, and not every bank is experienced in handling municipal financing.
Who understands the special needs of municipal finance?
Turn to Product Expert Steve Cooper at First Mid. “Our experience in public finance has allowed us to generate an understanding of client needs, and First Mid will make sure every client has the product that best fits their situation. We understand their entity’s cash flow and can create payment terms to meet their revenue. We are also comfortable analyzing tax receipts and levies to make sure the borrowers’ needs are considered fully.”
How do you finance a fire truck?
When a municipality needs a new fire truck, or a new snow plow, or money to pay for extensive roadwork or a capital project, many of them have found First Mid to be the perfect choice when it comes to understanding how to structure their needs.
“Over the years, we’ve completed more than $300 million in tax-exempt financing to various public entities,” said Cooper. “We have standard documentation for simple transactions and attorneys prepare documents to help with the more complex deals.”
Providing loans and leases to local units of government is one of the areas in which First Mid specializes. Included are schools, fire districts, municipalities, library districts, sewer districts and townships. According to Cooper, these transactions, available to most taxing bodies, are usually tax-exempt, which allows the borrowers to benefit from lower rates than traditional commercial loans.
Are bond offerings handled?
First Mid has provided countless financing packages for public entities, varying from short-term loans to large, complex bond offerings for buildings and other capital needs.
If you work for a municipality, why should you consider First Mid as a banking partner?
First Mid has long-standing relationships with many public finance clients. “They appreciate our understanding of public finance and know that we are willing to create a unique product to fit their very specific needs,” Cooper said. Contact him for more information.