Saturday, July 28, 2012

Project Financing

Financing Options:  Projects may be financed by the owner, builder-vendor, developer, investors, government or others.  A combination of financing sources may also be utilized such as utilizing both debt and equity to build a project.  



Commercial banks and thrifts dominate many segments of the construction lending market. Especially for larger projects, construction lenders include foreign and domestic pension funds, insurance companies, and real estate investment trusts (REITs). For specific types of projects, federal, state, and local government authorities, such as the state and local industrial development authorities, housing finance agencies, the National Consumer Cooperative Bank and other agencies can paly a significant role.  Financing is unique to the specific goals and circumstances of each particular project.


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