CEFA: Standard Bond Financing Grant Program

The CEFA: Standard Bond Financing Grant Program offers affordable, tax-exempt bonds to nonprofit higher education institutions in California. This initiative allows eligible borrowers to finance construction, acquisition, and refinancing projects to enhance their facilities. CEFA's expertise in various financing structures ensures innovative solutions for educational institutions, supporting their mission to serve students effectively. With a strong emphasis on regional accreditation and operational history, this program aims to empower educational entities in improving their infrastructure and resources.

Bond Financing Program
This program provides affordable, tax-exempt bonds to qualified nonprofit higher education institutions that wish to buy or refinance property and equipment, or build and improve campus facilities, in order to better serve its student population and faculty.
Eligible borrowers may use proceeds from the sale of bonds for:

• Construction and/or renovation of facilities.
• Land acquisition for future projects.
• Acquisition of existing facilities.
• Refinancing of existing debt.
• Costs of issuance.
• Other qualified expenses.
• Flexibility of Financing Structure

CEFA has extensive experience issuing bonds and other forms of indebtedness in both public offerings and direct placements using a variety of structures, including multi-modal indentures, master indentures, master loan agreements, deeds of trust and other security documents, and other financing structures (including forward delivery). The depth of experience of CEFA staff has made the agency well positioned to consider innovative financing techniques.

Eligibility

General Requirements:Be regionally accredited by the Western Association of Schools and Colleges;Be a private, non-profit, post-secondary degree granting educational institution that does not factor race or ethnicity into their admissions process, and is located in California or that has educational facilities in California that are regionally accreditedOffer a broad curriculum in secular subjects, and the information and coursework used to teach secular subjects must be neutral with respect to religion;Have been operating for a minimum of three years prior to submitting an application for financing and provide three years of audited financial statements;Have revenue or collateral sufficient to cover debt service on the proposed financing.Funds may be used for:ConstructionRemodeling and renovationLand acquisitionPurchase of or lease of equipmentRefinancing or refunding of prior debtCosts of bond issuances and reimbursement of prior expenses