NH BFA Tax-Exempt Bond Financing

NH BFA Tax-Exempt Bond Financing

Supports New Hampshire manufacturing, infrastructure, and community projects through tax-exempt bond financing.

The NH Business Finance Authority (NH BFA) Tax-Exempt Bond Financing program is a debt-issuance mechanism administered by New Hampshire's quasi-public state economic development agency, established in 1992. NH BFA serves as a conduit issuer of tax-exempt bonds, enabling eligible borrowers to access capital markets at lower interest rates than conventional taxable financing. Since inception, NH BFA has issued more than $5 billion in bonds supporting New Hampshire businesses and infrastructure. The program is active as of 2026.

Eligible project categories include manufacturing facilities and equipment, water and sewage infrastructure, airports and mass transit systems, nonprofit organizations, and select energy generation projects. The minimum project size is approximately $2,000,000 in bond proceeds. Eligible uses of proceeds include acquisition, renovation, or construction of buildings and land, and new equipment purchases; where an existing facility is acquired, at least 15% of bond proceeds must be allocated toward renovations. Refinancing of existing debt is not permitted. Issuance fees vary by term and size: bonds under 10 years and over $2M carry a 5/8% fee; bonds over 10 years and over $2M carry a 3/4% fee. All tax-exempt bond issuances require final approval by New Hampshire's Governor and Executive Council.

This is a bond issuance instrument, not a grant. The strongest applicants are manufacturers, utilities, nonprofits, or infrastructure developers with projects above the $2M threshold, a clear eligible use of proceeds, and the organizational capacity to manage a multi-step approval process that includes NH BFA credit underwriting and Governor and Executive Council authorization.