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With reduced fees and tax-free financing for projects, Treasury is helping nonprofits to stretch budgets and serve more Oregonians
Oregon Facilities Authority caps fees for SNAP Loans for $5 million or less
SALEM – From border to border, community nonprofits in Oregon are benefitting from low-cost financing facilitated by the Oregon State Treasury.
Today, State Treasurer Tobias Read announced that fees are coming down for borrowers who want to build projects worth $5 million or less.
“In communities across the state, nonprofits are working to improve the lives of Oregon families.” Treasurer Read said. “Treasury is helping Oregonians to invest in themselves, and nonprofits are able to do more because they are spending less on project financing and application fees.”
The low-cost financing comes via the Oregon Facilities Authority, which was created by lawmakers in 1989 to help nonprofit organizations obtain tax-exempt revenue bonds. The State Treasury oversees public bonding for state agencies, including the Oregon Facilities Authority.
The Authority also is changing the name of its popular program for smaller loans to the “SNAP Loan Program.” For smaller projects, the financing comes from a straightforward loan, not a more complicated bond sale.
Under the revised fee schedule, effective July 1, borrowers of smaller SNAP loans would have their fees capped at 65 to 80 percent of what borrowers pay for larger projects, on a sliding scale.
Individual nonprofits are responsible for repaying the debts. The state does not make payments or guarantee the repayment of any OFA-issued conduit revenue bonds. In addition, no state asset is used as collateral, or funding source is at risk.
Organizations assisted by the Oregon Facilities Authority include colleges, healthcare providers, cultural centers and community charities such as Morrison Child and Family Services and Mercy Corps.
By law, the bonds can be used for purchase of facilities and equipment, remodeling, construction financing, or refinancing to lower costs of loans used for capital purposes.
The Authority is overseen by a seven-member appointed board of directors and meetings are open to the public. More information about the OFA including frequently asked questions are available online, plus instructions for how charities and banks can participate. You also can call 503-802-5710.
The Oregon State Treasury protects public assets and saves Oregonians money through its investment, banking, and debt management functions. State investment policies are set by the Oregon Investment Council. The State Treasury also promotes public outreach and education to help Oregonians learn strategies to save money, invest for college and make smart financial choices.
You can learn more about the Oregon State Treasury on Twitter at @OregonTreasury, and about the Oregon Facilities Authority with the hashtag #OregonFacilitiesAuthority.
If you are a member of the news media and have a question or interview request for the State Treasurer or Oregon Treasury staff, please contact:
Communications and Stakeholder Relations