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Introduced in 1992, the Texas Leverage Fund (TLF)
provides an additional source of financing to communities that have
adopted an economic development sales tax. Communities may leverage
future sales tax revenues to support job retention or creation.
TLF funds are available for interim, long-term or gap financing, TLF
loans provide flexible financing terms to match the unique needs of
communities, with maturities of up to 15 years available. Generally,
EDCs are eligible to borrow four to five times annual sales tax
revenues, up to $5 million. TLF loans are low-cost, providing
capital to communities at floating Prime Rate, as published in the
Wall Street Journal.
Future sales tax revenues serve as collateral for loan repayment
with required debt service coverage ratios specified in the Texas
Leverage Fund Program Guidelines. Pledged tax collections not needed
for actual debt service are available for other projects.
More information:
click here
Contact:
Office of the Governor
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