Baystone Government Finance announced its completion of $3.35 million financing for the City of New York. Assistant Vice President Christina Ummel said the funds will be used to pay for 19 ambulances pressed into service at the height of the City's response to the COVID-19 pandemic.
"The FDNY had an urgent need for additional vehicles that could be used to transport patients from their homes to medical facilities or between facilities throughout the city," said Ummel. "The 19 vehicles purchased with the financing include nine Ford E-350s, three Ford E-450s, five Ford F-450s and one Ford S-350," she added.
Delivery of the ambulances
Working closely with Baystone, Angie Deming, president of Rochester, Indiana-based Republic First National Corporation submitted a bid for the financing in late March and received approval in early April.
The transaction funded on June 4, when the FDNY took delivery of the ambulances. "We were able to finance FDNY, a large municipal fire department in the United States, with Baystone as a valued funding partner. Great partnerships allow for great things to happen. Baystone's expertise helps us help our customers."
"State and local governments are facing widescale reductions in tax revenue from the economic and social effects of COVID-19 while also bearing the brunt of pandemic-related costs," said Bradley Buhrow, assistant vice president at Baystone. "These entities are also encountering increased funding challenges as some bank sources pull back from government financing. Given these new realities, tax-exempt government leasing is becoming critical to states and municipalities to acquire the essential equipment they need to keep our communities running."
Lower financing rates
Tax-exempt municipal leases, also known as lease-purchase agreements, do not require upfront cash outlays. These leases also offer lower financing rates than traditional commercial leases and loans-in some cases, a difference of multiple percentage points.
Baystone Government Finance specializes in tax-exempt equipment finance, working directly with governments and equipment finance organizations to help communities acquire the equipment they need. A division of KS StateBank, a full-service community bank located in Manhattan, KS, Baystone has originated and successfully funded billions of dollars in municipal obligations throughout the United States since 1987.