Program Costs

Just like with Virginia’s VRA Program, NatLUST’s “carrying costs” are the cost of its borrowed funds plus the cost of managing the program.

To reduce carrying costs to a formula, the carrying charges on a reimbursed claim would be: The daily pro-rata cost of (A+B+C) x the number of days a claim is outstanding x the dollar amount advanced on a claim. Where A = the daily cost of NATLUST’s borrowed money; B = amortized legal/set up costs; and C = ongoing administrative costs.

To put this in simple terms, essentially all that NatLUST is doing is allocating costs on a pro-rata basis based on the size of each claim and the number of days it takes until the claim is reimbursed. This is fair as all parties – big and small – are treated equally.

In general, NatLUST participants should reasonably expect that NatLUST’s carrying costs will likely be at least as attractive as Virginia VRA’s Program, which is running about 3% on an annualized basis. Upon receiving its 501(c)(3) certification, NATLUST will receive low cost municipal bond financing through its relationship with the ________________ Authority, a Virginia quasi-governmental entity. And because the Program's expected large size, NatLUST will likely achieve significant economies of scale.

For a history of VRA’s carry costs, click here. As with the VRA program, NATLUST's historical funding costs will be posted to this site.