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FAC Local Government Loan Program
The Florida Local Government Finance Commission is a nonprofit entity created with the authority to lend funds to Florida's local governments and administered by the Florida Association of Counties. The sole purpose of its creation was to provide a more cost effective means of borrowing to Florida's counties, cities, school boards, and other municipal entities.
The Florida Local Government Finance Program is a pooled commercial paper loan program that provides interim financing for up to 5 years for various capital improvement projects. Low interest rates and ease of use are hallmarks of the program. Over its history, participants have been able to save between 150-300 basis points annually on borrowings. Since its inception in 1991, it has lent nearly two billion dollars to Florida's local governments for various capital improvement projects including: facility construction, acquisition of land, vehicles, and equipment, beach renourishment, even debris removal following the hurricanes in 2003.
Because of the pooled structure of the program, each participant is afforded the ability to capture the benefits of the program's economies of scale and highly rated marketplace standing. And because of its non-profit status and no-frills approach, the Florida Local Government Finance Program is able to offer significantly lower all-in costs than other alternative methods of municipal financing and unparalleled flexibility, such as no penalty for prepayment and extremely time-efficient processing. Loans from the program are made on an as-requested basis, and can take as little as 30 days; prepayments need up to 45 days notice.
In a nutshell, The Florida Local Government Finance Program is municipal finance made simple. For current rates or more information about the program, please contact Elizabeth Newberry @ 850.922.4231.