SCAGO's Tax Anticipation Note ("TAN") program is a cash management tool that maximizes investments by utilizing a pool structure that provides opportunities that allow instant liquidity when only short term borrowing is required. TANs increase the ability to borrow at a lower rate and invest at a higher rate due to the size and legal structure.
How can a TAN help your District?
- TAN provides a ready source of monies that can be drawn (48 hours or less notice required) to meet your cash flow needs
- The pool structure spreads the cost of issuance on a pro rata basis to all participants
- No cross default - all participants stand on their own
- Participants earn a spread on any deposited funds not drawn upon
- The highest return possible is obtained on investments while funds are not being drawn upon and competitive bidding provides the best borrowing rate possible
- Eliminates the need for a district to prepare an official statement to issue a TAN
In 2023-24, SCAGO issued $30,500,000 in TANs on behalf of seven (7) South Carolina School Districts.
