Credit Enhancement Program
The Credit Enhancement Program helps cities and counties reduce the costs of borrowing to build certain public facilities.
Administered by the Minnesota Public Facilities Authority (PFA), the program provides limited state bond guarantees, which result in higher credit ratings for counties and lower interest rates on general obligation bonds.
Cities and counties apply to the PFA for a specific bond issue and enter into an agreement to comply with the requirements of state law.
If counties are unable to make a payment on the bonds covered under the program, the state will make the payment, provided that funds are available in the state general fund.
If the state pays part or all of a bond payment, the county's full-faith-and-credit pledge on the bonds automatically becomes a full-faith-and-credit pledge to repay the state, with interest.