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Lorain County Port Authority Financing Programs |
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The Lorain County Port Authority offers project financing through two mechanisms:
The BOND RESERVE FUND and PORT LEASE FINANCING
The BOND RESERVE FUND is designed to provide long term fixed interest rate financing for qualified industrial, commercial and public infrastructure projects. It enables small and medium sized companies with the ability to access the national capital markets through a system of reserves that serve as credit enhancement.
ISSUER OF BONDS: Lorain County Port Authority
TYPES OF BONDS: Taxable and Tax-Exempt
TERM OF LOANS: Average loan terms fall between ten (10) and twenty (20) years; Loans for machinery and equipment do not typically exceed seven (7) years
INTEREST RATE: Fixed at the time bonds are sold for the term of the bond, based upon the rating of the bond fund and taxable or tax-exempt status of the project
LOAN SIZE: Approximately $1 Million to $6 Million
PORT LEASE STRUCTURED FINANCE options are generally used for large scale projects. In-depth descriptions are available from our office. Please contact us to review your project.
TYPES OF LEASES:
*Finance/Capital
*Operating
*Synthetic
CAPITAL - A lease that meets one or more of the following criteria, meaning it is classified as a purchase by the lessee: the lease term is greater than 75% of the property's estimated economic life; the lease contains an option to purchase the property for less than fair market value; ownership of the property is transferred to the lessee at the end of the lease term; or the present value of the lease payments exceeds 90% of the fair market value of the property.
OPERATING - A lease for which the lessee acquires the property for only a small portion of its useful life. An operating lease is commonly used to acquire equipment on a short-term basis. Any lease that is not a capital lease is an operating lease.
SYNTHETIC - A transaction that appears as a lease from an accounting standpoint, but as a loan from a tax standpoint. The end results are an off-balance sheet account of the financing and the tax benefits that accompany the financed asset.
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