IRS Makes It Easier For Tribes To Use Draw-Down Loans
The Internal Revenue Service issued Notice 2015-83 on Dec. 4, 2015, an administrative rule change that will make it easier for Native American tribal governments to use “tribal economic development” (TED) bond volume cap for "draw-down" loan structures. Draw-down loans are typically used by tribal governments to finance new construction projects. Under a draw-down arrangement, the lender advances funds for the loan on different dates as construction benchmarks are met. The new notice represents an important step forward in the effort to improve access to capital for Native American tribes.