Tax-exempt leases can be extremely attractive because the actual interest rate level is based upon the creditworthiness of the facility. The security for a tax-exempt lease can be either in the form of a lien on the equipment purchased or secured by hospital revenues. Off-balance sheet financings are also possible in some cases. The Council can assist in arranging a competitive process to determine the interest rate on the lease. Borrowers may work through the Council's ValuLease Program or through a lease vendor of their choice.

The ValuLease Program simplifies the tax-exempt lease financing process for borrowers. The borrower makes a list of the equipment it wishes to acquire and itemizes the estimated costs of the equipment and the desired terms of repayment. Through a national financial advisor specializing in these types of leases, the Council prepares a bid package that includes the equipment list, standardized lease documents and information regarding the borrower, and then bids out the lease to a number of typical lease purchasers. The borrower reviews the resulting bids and selects the winning bid. Sample documents and a ValuLease Application can be obtained in the Financing Documents section of our website.