Small Borrower Program

CECFA has created a special Small Borrower Program for certain loans under $4 million, which features reduced fees and a streamlined application process. The program makes tax-exempt interest rates available to a broader group of nonprofit borrowers which have not traditionally been able to access these lower rates.

The Small Borrower Program provides you with:

Technical Assistance to help you evaluate your options, understand the process, and determine if tax-exempt borrowing is right for you. Even if you don’t end up borrowing through us, we’re always happy to help you analyze your choices.

Reduced Fees* You pay CECFA an Initial Fee of $5,000 for transactions under $2 million. The fee increases gradually for transactions up to $4 million.

Streamlined Processing allowing you to close in as little as 30 to 60 days.

To qualify for the Program, the loan must:

Be a “Direct Placement”. These are loans made by a single lender, usually a bank or other major capital source. You may be able to work with your current bank to obtain the loan.

Use Standard Documents. To reduce the substantial costs associated with drafting complete bond documents, the Small Borrower Program requires the use of pre-approved documents. You and your bank can make changes if necessary, as long as the documents remain substantially as drafted.

Not Use a Trustee. Because there is only one lender rather than many investors, the transaction does not require a trustee, which also saves fees.

Be Used for Facilities or Equipment Located in Colorado. The program is available only for loans to pay for Colorado projects.

* In addition to the Initial Fee, you will be required to pay the cost of the bond counsel opinion, which is required by federal law for the loan to be tax-exempt. Sherman & Howard acts as bond counsel for Small Borrower transactions unless they have a conflict. The price of a bond counsel opinion is about $25,000. You will also pay fees to your lender and your general counsel.


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