Steps in Securing QZAB Funds

The Eight Steps are:

1. Select any school/schools, as a Qualified Zone Academy.
2. Once the Qualified Zone Academy is established, determine projects’ scope (anything except new construction).
3. Once the size and scope of school projects are determined, locate a "Qualified Contributor, " a business partner, to supply a 10% matching grant.
4. With steps 1-3 completed, the state department of education should be notified and a request for allocation submitted.
5. Get an allocation from the state department of education
6. Get the QZAB program approved by the local government if required.
7. After the QZAB allocation has been approved, the school district must locate a "Qualified Buyer" (bank, insurance company etc.) who is willing to take the debt and a Federal tax credit instead of an interest check.
8. Issue the QZAB to the qualified buyer and secure QZAB funds.

Note: The total cost of issuing the QZAB bonds cannot exceed 5% of the QZAB bond proceeds, as per Federal Treasury Department’s QZAB regulations.