Paramount to schools, whether public or private or primary, secondary or post-secondary, is the cost of borrowing. Public schools and private non-profit schools, alike, can benefit from tax-exempt bond financing. The interest paid to holders of tax-exempt bonds is not includable in their gross income for federal or state income tax purposes. Because of that exclusion, tax-exempt bonds carry a much lower interest rate than taxable “conventional financing” from financial institutions. A lower interest rate means that a public or private non-profit school can better afford a project.
In its 50 plus years of existence, Rubin & Hays has acted as bond counsel on hundreds of non-profit and public-school projects. This experience allows Rubin & Hays to assist schools in reaching their goal of keeping the cost to borrow low so that schools can achieve their educational goals. School administrators can call to ask questions about their financing as we stand ready to answer any questions that may arise.
Rubin & Hays has worked with many of the Commonwealth’s primary educational institutions to assist them in financing a multitude of different capital improvement projects. Being a Kentucky based firm, Rubin & Hays has a vested interest in the growth and development of Kentucky’s education system. Our present and future partners and employees, our families, and the families of our Kentucky clients will all be touched in one way or another by a Kentucky school, university or college.
It is our desire not only to provide expert legal services to school districts, but also our wish to explore with our school districts knowledge of innovative financing techniques such as the use of new market tax credits, community-based public/private initiatives including sources for contributions and donations, and our thoughts as to the future of Kentucky’s education system. We take pride in our state schools not only as alumni but also as parents (and one-day, grandparents) of present and future students.
In addition to assisting public schools, Rubin & Hays has worked with private non-profit schools and post-secondary educational institutions, including colleges and universities. Private non-profit schools and post-secondary educational institutions can provide unique challenges when structuring affordable financing options. A long-term perspective is essential when a school is considering long-term financing. Thought must be given to how collateral will be leveraged for future financings and fund-raising efforts must be tailored to comply with IRS regulations. A review needs to be made of private business uses, research contracts, and management contracts.
Financing options for private non-profit and public post-secondary educational institutions may include a letter of credit, rating by a national rating agency, variable rates, debt obligations, and swaps to fixed interest rates. Rubin & Hays reviews with their clients the various options they have to finance their next project.
Whether you represent a public elementary school or a private non-profit college, let Rubin & Hays provide you with the various options to finance your next project.