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