Bond Financing

Lonzo Biologics aerial view

Bond Financing

Reduce interest expense on large capital projects with tax-exempt bonds issued by the BFA.

Tax-exempt bonds for facilities, equipment, and non-profits.

Considering purchasing or constructing a new facility for your business? Or making substantial investments in new equipment?

You can dramatically reduce the interest rate on your loans by utilizing a tax-exempt bond from the BFA. These are loans from your traditional lender but with interest rates set below market.

Eligible Project Types:

  • Manufacturing Facilities and Equipment
  • Solid Waste Disposal
  • Water Infrastructure and Water Systems
  • Non-Profit Organizations
  • Airports
  • Mass Commuting Facilities
  • Sewage Facilities
  • Certain Energy Generation Facilities

Eligible Uses of Bond Proceeds:

  • Acquisition, renovation, and construction of buildings and land
  • Acquisition of new equipment
  • Minimum project size approximately $2,000,000
  • When purchasing an existing facility, 15% of bond proceeds must be applied to renovation of the facility
  • Bond proceeds cannot be used to refinance existing debt
  • Bonds are not obligations of the BFA or the State of New Hampshire. The borrower is legally obligated to repay them.


Upon issuance of the bond the BFA charges a one-time issuance fee:

Bond Term
less than 10 years; >$2,000,000
less than 10 years; <$2,000,000
more than 10 years; >$2,000,000
Issuance Fee

How to Apply:

  • Begin by calling the BFA to discuss the project
  • We will help you determine if the project is eligible
  • The BFA can also make introductions to lenders familiar with the tax-exempt bond process
  • Once the project is ready to proceed, fill out the online application
  • Once a financing commitment has been obtained the project will be approved by the BFA board of directors
  • Tax-exempt bonds are subject to final approval by the governor and executive council

Start the process now

Frequently Asked Questions

What projects are eligible for tax-exempt bonds?

Eligible projects are determined by the IRS. The most common types of eligible projects are new manufacturing facilities and equipment, solid waste disposal facilities and equipment, water infrastructure, and other types of publicly accessible infrastructure such as transportation projects and/or pollution control projects.

What is the approval process?

Projects are approved in two stages. The first approval occurs via the BFA’s board of directors, with final approval provided by the governor and executive council.

What are the fees?

The fees vary based on the size of the bond, as well as the time the bond will be in place. Fees are listed on the BFA website under the “Bond Financing” section.

How do I apply?

Apply online, or call the BFA any time at 603.415.0190.