The Authority’s “SNAP Loan” program for nonprofit, 501(c)(3) organizations in Oregon began in 2007 with an eye toward making it an easy to understand, quick and efficient process for obtaining tax-exempt financing. The program is an alternative to taxable commercial financing and is typically used for projects in the $500,000 - $20,000,000 range. By financing through the SNAP Loan program, nonprofit organizations can save many thousands of dollars in interest costs over the life of the loan.
SNAP Loan fees have been structured to make the program highly competitive and cost effective for loans as low as $500,000. A SNAP Loan can be completed in as little as eight to ten weeks from time of application acceptance to closing.
Nonprofits typically use SNAP Loan financing to purchase or construct facilities, or to refinance loans previously taken out for those purposes. A bank makes the loan, which is converted into a SNAP Loan with OFA’s assistance. Both the bank and OFA use standardized documents that make the bond documentation process especially straightforward. Because the hallmark of a SNAP Loan is its simplicity, a SNAP Loan is not usually not compatible with tax credit transactions, and cannot be paired with loans hedged with swaps or other derivative products.