As public agencies are working hard to protect and serve their communities, proper equipment is necessary, but funds are not always readily available. By delaying the purchase, agencies are faced with the manufacturer price increases, inflation, and costs of maintaining aging fleets, all of which pose safety, operating, and financial risks in the long run. Most local government entities who have the power of eminent domain, police power, or the power to levy taxes can qualify for tax-exempt equipment lease financing that can also be legally designated as "Bank Qualified," resulting in lowest interest rates possible.
Who can benefit from equipment financings?
- Cities, counties, townships
- Fire Districts
- School Districts
- Special Purpose Districts (parks, utility, water, etc.)
- Schools, Community colleges and public universities
- Municipal ports and airports
- Transportation agencies
In addition to qualifying for low interest rates, municipalities can preserve their cash while acquiring the necessary equipment needed for their day-to-day operation. Entering into a municipal lease may also be more cost-effective than waiting to purchase because the agency can acquire equipment at today’s prices (rather than risking economic erosion due to inflation and supply chain disruptions) and avoid the increasing maintenance costs associated with aging apparatus.
Municipal leasing can seam simple on the surface, but nuanced and complicated state and federal laws can represent significant pitfalls for the unwary. With the right financing team, however, lease financing can be structured to provide tax-exempt advantages as well as "Bank Qualification," thereby resulting in lowest interest rates and best terms possible.
Types of Equipment that qualify for lease financing
- Fire Apparatus
- Construction Vehicles and Equipment
- Buses, Ambulances, Police Cars, Helicopters, etc
- Public Works Vehicles and Equipment
- Snow Plows
- Medical Equipment
- Law Enforcement Equipment
- Computer and Technology Equipment
- Portable Buildings
- Water Meters
- Energy Efficient Improvements
- Shade and Storage Structures
Weist Law assists public agencies in obtaining favorable financing options from various lenders or joint powers agreements on a tax exempt, Bank Qualified basis. Our team always uses best practices and specializes in providing equipment financing structures that provide cost savings and beneficial terms to pubic agencies.
If you are interested in learning more about this program and how we could assist your agency, please feel free to schedule a free consultation with our team by clicking here.
The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact a designated Weist Law representative. This material may be considered advertising under certain rules of professional conduct.