Our Baystone team has been busy this summer helping schools across the nation finance mission-critical equipment and vehicles they need cost-effectively.
We’re seeing strong, continuing demand for technology financing as schools update and replace computers, software and other essentials. Transportation financing is near the top of the list, too, including increased funding requests for electric school buses and the infrastructure to charge them. Used school buses are also of interest, as prices seem to be leveling out and inventory levels are on the rise.
These are just a few equipment categories that must be addressed urgently as the new academic year approaches.
Attractive Financing Option
While we can arrange different forms of financing to meet each division’s preferences and budget considerations, tax-exempt municipal leases are often an attractive option for acquiring school equipment.
Schools that tap into tax-exempt municipal leases for equipment funding enjoy multiple benefits. For one, this form of financing does not require upfront cash outlays. It offers much lower financing rates than traditional commercial leases and loans, by multiple percentage points in some cases. That’s an especially important consideration in 2022 given climbing interest rates.
Leasing also provides flexibility for upgrading or changing equipment as school needs, and technology capabilities, evolve. It spreads out the cost of equipment over its useful life so schools can access the equipment they need now, more affordably.
What’s more, financing can be arranged in a way that benefits schools when deliveries are delayed long-term due to supply chain issues that are affecting certain types of equipment. Our escrow accounts allow schools to earn interest while waiting on their equipment – offsetting the cost.
Contact us if you’re considering a tax-exempt municipal lease for school equipment. We have extensive experience in municipal leases, can “educate” you on how this type of funding works, and can finance your assets.
Electric Bus Rebates
The upfront costs of an electric school bus can be 3x the expense of a traditional one. We are financing more and more electric school buses but also want to make you aware there are government programs that may help defray costs. The Environmental Protection Agency (EPA)’s Clean School Bus Rebates program has a fast-approaching deadline – August 19, 2022 – to apply for rebates to replace existing school buses with clean and zero-emission models.