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 pbu@uky.edu prior to entering into an agreement.