Happy New Year! The new 2017 tax reform bill preserves the right for non profits to borrow on a tax-exempt basis! This is great news! Close call for non profits; the initial reform bill written by the house eliminated tax-exempt borrowing for non profits. Although non profits can still borrow tax-exempt, the corporate tax rate has decreased. Unfortunately, this decrease brings changes to the tax-exempt multiplier. In other words, banks will be paying less taxes and therefore have less to write off when lending to a non profit. The downside for non profits is that an organizations current tax-exempt rate may change. Banks reserve the right to increase rates based upon new laws. We have heard from some banks that rates will increase by between 40 – 70 bps or .4%-.7%. Not all banks, however, will be increasing rates. If you have questions about your bank raising your rate, please give us a call to discuss!