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TIF Monetization Loan Program

Would you like more information on how our TIF Monetization Loan Program can work for you?

At Northwest Bank & Trust Company we look for market opportunities that require the development of unique lending solutions that provide superior value. Our TIF Loan Monetization Program does that by helping developers convert pay-as-you-go TIF incentives into cash.

In this program, we convert the incentivized project's pay-as-you-go projections into a loan structure that immediately maximizes available cash. We also assist the borrower by documenting a minimum tax payment during the term of the redevelopment agreement and, therefore, a minimum pay-as-you-go TIF receipt. This approach has one overwhelming advantage for everyone: Certainty.

The developer is certain about the amount of each incentive payment. The municipality is certain about the amount of tax revenue it will realize. And as the lender, we are more certain about how our loan will be repaid.

Developer Benefits

  • Reduce their out-of-pocket investment in the incented project.
  • Invest in larger incented projects.
  • Increase cash-on-cash returns.
  • Free-up value trapped in incented projects for use in an unrelated project.

Municipality Benefits

  • Mitigates much of the risk for the municipality offering the incentive.
  • Establish payment expectations to ensure that increment will be generated.
  • The municipalities borrowing capacities or debt limits are not impacted.
  • The developer is more likely to follow through on the project as their funds are put in first.
  • This program is more flexible, avoids the complexities and has lower costs than bonding.

Benefits for Both Parties

  • The municipality is able to offer the pay-as-you-go incentive model, while affording the developer the opportunity to get their funds upfront.
  • With a higher equity infusion, the product/project becomes substantially more viable.

Contact Emily Blaylock or Adam Holland for more information about this program.


Emily Blaylock
Senior Vice President
Chief Lending Officer

Phone: 563.388.2555
Email: eblaylock@northwestbank.com

 




Adam Holland
Assistant Vice President
Commercial Banker

Phone: 563.388.2645
Email: aholland@northwestbank.com

 

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