Loan program
Private activity bonds
Tax-exempt bonds issued by a governmental entity for qualified private projects such as affordable multifamily housing, exempt facilities and manufacturing.
Private activity bonds (PABs) are issued by state or local governmental conduits to finance projects of qualified private borrowers. When they meet federal tax-code requirements, interest may be tax-exempt to investors, which can reduce borrowing costs.
Common uses
- Affordable multifamily housing (often paired with 4% Low-Income Housing Tax Credits)
- Exempt facilities such as certain transportation, water, sewer and solid-waste projects
- Small-issue manufacturing bonds (industrial development bonds)
- Qualified 501(c)(3) nonprofit projects
Considerations
Many PAB categories require an allocation under each state's annual volume cap, public approval (TEFRA hearing) and compliance with use and income restrictions. Bond counsel is essential.
Get financing from GlobusAll programs
Educational information only. Not legal, tax, municipal-advisory, investment or lending advice, and not an offer or commitment to lend or to issue bonds. District rules, thresholds and timelines vary by state and municipality; consult bond counsel and qualified advisors. Calculator outputs are illustrative estimates, not quotes or approvals.
Globus Capital Advisors
Considering Private activity bonds?
Globus Capital Advisors, a commercial loan broker, works with bank, agency, CMBS, debt-fund, SBA and bond-market lenders and can tell you whether this structure fits your deal.