Economic Development & Tax Incentive Finance
Providing a unique lending solution for developers
At Northwest Bank & Trust Company we look for market opportunities that require the development of unique lending solutions that provide superior value. Our Tax Increment Financing (TIF) Loan Monetization Program does that by helping developers convert pay-as-you-go TIF incentives into cash.
Developer Benefits
- Reduce your out-of-pocket investment in the incented project.
- Invest in larger incented projects.
- Increase cash-on-cash returns.
- Free-up value trapped in incented projects for use in an unrelated project.
Municipality Benefits
- Mitigates much of the deal risk for the municipality offering the incentive.
- Establish payment expectations to ensure that increment value will be generated.
- Municipality borrowing capacity at debt limits are not impacted.
- The developer is more likely to follow through on the project as their funds are put in first.
- Allows for more flexibility, avoids the complexities and has lower costs than bonding and other alternatives.
Benefits for Both Parties
- Municipalities are able to offer a pay-as-you-go incentive model, while affording the developer the opportunity to realize their funds upfront.
- With a higher equity infusion, the project becomes substantially more viable.
Would you like to know more about how our TIF Monetization Loan Program can work for you?
Linda Wunsch
Assistant Vice President
Commercial Loan Officer
Economic Development Division – Iowa
563.388.2514
Adam Holland
Assistant Vice President
Commercial Loan Officer
Economic Development Division – Illinois
563.388.2645
Kirk Bustrom
Assistant Vice President
Commercial Loan Officer
Economic Development Division – Minnesota
563.388.2544