Community Bankers’ Bank and our partner, Community Leasing Partners (CLP), offer you two ways to grow earning assets. First, participate in municipal lease-purchases that we offer through CLP. Second, originate your own municipal loan activity with our support.
Lease-purchase agreements (or “installment notes” in some states) offer municipalities a useful financing tool for capital equipment purchases such as fire trucks and fire equipment, ambulances, school buses, police cars, snow plows, etc., and some related real estate transactions such as fire stations.
Unlike municipal bonds, lease-purchase agreements are not subject to voter approval, debt limitations, or the costly, unpredictable and time consuming bond financing process. You’ll find them similar to a traditional term loan, with a borrower, defined repayment source and structure, collateral, and an owner responsible for maintenance, insurance, applicable taxes, etc. What’s more, they are often tax-exempt and CRA eligible and you’ll expand your C&I portfolio with new equipment leases.
With CBB you have more options to compete for municipal business without increasing overhead. Also, as you market this product, we can assist in structuring, negotiating, documenting, closing, and servicing the opportunities that you originate for yourself in your municipality. While a larger financial institution may have a lower priced RFP, your bank can win the bid because of your relationships within your community and our support for as much as needed.