OFA’s Loans to Public Bodies Program

Overview of Loan Program

The Loans to Public Bodies Program (the Program) provides cost-effective financing to public bodies such as hospitals, school boards, colleges, Crown agencies, and specified Provincial corporations, boards and commissions. Under the Program, the Province, through the OFA, provides primarily long-term financing to these entities for capital purposes.

The types of projects that the OFA has provided financing for vary and include capital projects, such as college student residences, hospital information systems, and hospital long-term care facilities. Short-term financing for operating or working capital purposes is not typically provided.

Since the inception of the Program:

0 loans provided
0 public bodies
0 of estimated annual interest costs savings for every $5 billion in long-term loans

Eligible Borrowers

Under the Capital Investment Plan Act, 1993, the OFA can provide loans to public bodies. This includes:

  • Hospitals
  • School Boards
  • Colleges
  • Universities
  • Municipalities
  • Crown agencies
  • Entities described as a public body in a regulation under the Capital Investment Plan Act, 1993.

As a matter of policy, the OFA generally only provides long-term loans to public bodies that are consolidated on the Province of Ontario’s financial statements. Public bodies that are not consolidated, such as municipalities and universities, seeking infrastructure financing should contact Infrastructure Ontario.

Lending Rates

The OFA provides long-term financing to public bodies on either a fixed rate or variable rate basis. The interest rates charged to public bodies are based on the Province’s cost of funds for a similar term structure, and include an interest rate spread for the recovery of administrative costs related to loan origination and the ongoing monitoring and management of the loans over the term of the financing. Where applicable, a proxy commercial interest rate spread will also be added to reflect the underlying risk of the project being financed. Variable short-term rates apply during the construction phase, and long-term rates are set at the time of project completion when the construction financing is converted into a fixed-rate loan.

Public bodies benefit significantly from the Province’s lower cost of funds when compared to commercial lenders – typically 50 to 100 basis points lower. These savings are reflected on both the public entity’s and Province’s financial statements in the Public Accounts of Ontario.

Contact OFA Loans

For further information about the Program, please contact the OFA at: CFB-Loans@ofina.on.ca.

Featured

Quick Access to Key Pages and documents

Pages with additional information about the Program, also view the FAQs document.

Application Process

Detailed information about eligibility to apply and timing of approval.

Application Process

Information Requirements

Proposed loan information, project business case and cash flow template.

Information Requirements

Frequently Asked Questions

Program information, eligible entities and projects, application process.

Download the FAQs