The Rhode Island Health and Educational Building Corporation (“RIHEBC” or the “Corporation”) is a quasi-public agency whose mission is to provide cost-effective, efficient, and user-friendly funding programs for mission-critical capital projects of eligible institutions. Eligible institutions include municipalities, public and private educational institutions, nonprofit performing arts centers, museums, hospitals, and other nonprofit physical and mental healthcare organizations. RIHEBC’s funding programs include tax-exempt or taxable bonds, grants, and direct loans.
SUMMARY OF FINANCING PROGAMS
Not-for-Profit Programs: to be eligible for RIHEBC’s not-for-profit programs, your organization must be designated by the IRS as a 501(c)(3) entity and you must fall into any of the categories of eligible institutions shown above.
Bonds: Tax-exempt bonds are for longer term financings of larger capital projects such as construction, renovations, capital improvements. Refinancing of existing debt may also qualify. Approximate minimum borrowing amount is $3 million depending on a variety of factors.
Equipment Loans: Tax-exempt equipment loans are for shorter term financings of capital equipment needs. Approximate minimum borrowing amount is $1 million depending on a variety of factors.
Public School Bonds: to be eligible for RIHEBC’s Public School Bond Program, you must be a public school district with a school facility improvement project that has been approved by the SBA and is eligible for state housing and capital fund aid. The bonds must be approved by the RI legislature as well as your local voters.
By accessing the tax-exempt interest rate market, the above programs are more cost-effective than conventional bank financings, thereby lowering the overall cost to borrow of our institutions.
Not-for-Profits and Municipalities
HELP: The Health and Education Loan Program is for organizations with operating budgets of $10 million or less that have been in existence for three years or more. These loans will range in size from $25,000 to $250,000 and are to be used for capital projects and/or equipment purchases that further the mission of the borrowing institution.
Grants: The RIHEBC Board can, at its discretion, authorize designating a portion of its reserves to make grants to eligible institutions. These grant programs are competitive and are funded when the grantee submits the required funding paperwork. There are currently no grant programs in progress.
More information may be found at our website, rihebc.com, under the “Financing Assistance” tab and the “Borrower Resources” tab. You may call us any time at 401-831-3770 or email executivedirector@rihebc.com.