Private Business Use

Private business use is the use of tax-advantaged bond-financed property (including property financed with tax-exempt bonds or build America bonds) in a trade or business carried on by a person other than a state or local government entity.

Potential private business use arrangements include:

  • Management contracts
  • Sponsored research agreements
  • Naming rights contracts
  • Long-term leases and subleases of facilities
  • Short-term leases and subleases of facilities
  • Franchise contracts
  • Joint venture corporations and partnership arrangements
  • Unrelated business income activities
  • Transfer of ownership
  • Other special legal entitlements and economic benefits

If you plan to have any of the arrangements described above in a bond-financed facility, please contact University Financial Services Administration at prior to entering into an agreement.