A Catholic university in the Bronx is the first non-profit to utilize a new funding vehicle offered by the Economic Development Corporation, the New York Observer reported.
The loan facility is called Build NYC, and the school, called Manhattan College despite its location in Riverdale, will refinance a loan for new facilities construction it incurred in 2000 with $26 million from the program.
The EDC administers the loan, which is made through bondholders, both private and institutional, who, in return for lending to non-profit organizations, receive an exemption from local, state and federal income taxes on their investment.
“Their current rate is 5.5 percent and the Build NYC facility will allow [the school] to refinance for rates between 2.5 percent and 2.9 percent,” an EDC spokesperson told the Observer. [NYO]