In OFA’s Traditional Bond direct loan program, a bank or other financial institution provides the underlying loan to the nonprofit borrower. However, unlike the SNAP Loan program, the Traditional Bond direct loan program can accommodate more complicated arrangements, including swaps or other interest rate hedging arrangements and complex credit support arrangements. The nonprofit borrower also has the opportunity to customize its loan documents, but many banks that participate in the Traditional Bond direct loan program have developed standardized documents that potentially streamline the process.
Traditional Bond (Bank Placement) – Application and Instructions
Borrowers and their financial and legal advisors should confer with OFA’s staff prior to making an application to issue through the OFA Traditional Bond direct loan program.