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Governor Office Building
200 Madison Street
Suite 1000
P.O. Box 567
Jefferson City, MO 65102
Phone: 573/751-8479
Fax: 573/526-4418
E-mail:mdfb@ded.mo.gov


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MDFB Cultural Facility Revenue Bond Program

The Missouri Development Finance Board is the only governmental issuer of tax-exempt bonds for cultural facilities in the State of Missouri.

Tax-Exempt Bonds can be used to finance cultural facilities for charitable organizations which are qualified 501(c)(3) entities. Interest rates on tax-exempt bonds are significantly below conventional rates.

Money Can Be Applied To:

  • land acquisition
  • machinery and equipment
  • building acquisition
  • renovation
  • construction
  • architectural and engineering
  • issuance cost (2%)
  • land improvements

The bonds will be sold based upon credit supplied by the applicant. Generally most applicants will secure a letter of credit from a commercial bank. The higher the credit rating of the bank, the lower the bond interest rate. Once an application is received the Board will consider a resolution of intent at its next meeting. The applicant will also be responsible for selecting an underwriter, which will market the bonds-the Board has a list of underwriters in the state if needed.

A few examples of facilities that bonds may cover the cost of purchase, construction, expansion or improvements are:

  • museums
  • recreational facilities
  • other facilities for 501(c)(3) not for profit entities

Benefits:

  • below market interest rates
  • short and long term
  • flexible repayment schedules financing
  • fixed or variable rates
  • 100% financing
  • statewide issuing authority for multiple site projects

Cultural Facility Revenue Bond Application