NIFA’s loan guarantee program, Building Infrastructure in Nebraska for Greater Opportunities (BINGO), is designed to stimulate the development of eligible projects in rural and targeted areas by leveraging local resources.
NIFA’s General Obligation (G.O.) bonds combined with third-party credit enhancements, guarantees and revenue streams from sources such as tax increment financings or community leases, provide an alternative source of financing. Small, qualified improvements, eligible under the NIFA statute, such as infrastructure for affordable housing or community development, can be financed at attractive interest rates.
Depending on the type of project being financed, NIFA’s G.O. bonds may qualify as a low risk, highly desirable, CRA investment opportunity for commercial banks. By using NIFA’s investment grade G.O. guarantee, the underlying documentation is greatly simplified and issuance costs are reduced as compared to a typical revenue bond financing.
When using the BINGO Bond program, the original principal balance of any loan to be guaranteed by NIFA may not exceed $250,000 per phase; $500,000 per project and may only finance costs associated with capital improvement funding. Working capital and operating expenses are not eligible for funding. The loan-to-value ratio should be at least 70 percent and any credit-enhancement must be acceptable to NIFA.
Eligible developers include individuals, partnerships, communities and limited liability companies, both non-profit and for-profit, depending on the eligible project, with substantial development experience and/or access to such experience capable of completing the project.
The types of projects eligible for a guarantee or financing through the BINGO Bond program are varied. NIFA staff can assist in identifying these projects.