One of the most powerful financial tools available for building or renovating is the local lending/banking institution. To use this tool, the grantees’ operating budget may be used for debt service.

Debt Service is the process by which a grantee borrows money and has a budget line item that is used to re-pay the debt on a monthly, semi-annual, or annual basis. In order to create a Debt Service, a grantee should do the following:

• Set up an accounting system to control the agency's or grantee's costs
• Create sub-accounts to determine agency costs for each area of services and center
• Establish a "Debt Service" line item
• Establish cost reduction system(s)
• Target a goal of 2 – 5 percent of the total budget for debt service

Following are resources to consider when seeking financial assistance:

• ACF Regional Office Funds
• Bank Loans – Regular or Commercial
• Brainstorm with facility support staff and administration to create savings
• Community Reinvestment Act
• Debt Service Programs
• Discretionary Funds -- Work with the Regional Office to locate
• Empowerment zone grants
• Federal Leasing-ownership Program
• Historical data can be used to create savings
• Department of Housing & Urban Development (HUD) Grants
• HUD Loans
• Lease/Buy-Back Programs
• Municipal Bond Issues
• Private Grants and Loans
• Secondary Mortgage Market
• U. S. Department of Agriculture (USDA) Loans
• Treasury Department Web site-- http://www.ustreas.gov/topics/financial-markets
• www.cfda.gov a searchable index of federal programs, projects, services and activities