Industrial Development Bonds (IDBs)

Features Taxable and tax exempt securities issued by a government entity Lower interest rates due to Federal & State tax exemptions May be used for property acquisition, equipment purchases, building improvements, construction and expansion Requirements Public benefit considerations 10-20% cash down payment 100% letter of credit from an "A" rated financial institution State law requires that one job be created or retained for every $50,000 in bond proceeds Adoption of a Reimbursement Resolution to recapture eligible expenses incurred 60 days prior to the adoption State Treasurer's Office allocation on a competitive scoring basis Maximum Bond Size $10 million over a 6-year period, three (3) years prior to and three (3) years after bond issuance Target Borrowers Manufacturing or value-added operations Established business for more than ten (10) years Annual sales between $7.5 - $20 million dollars Fewer than 100 employees Location within the five State Enterprise Zones and the City’s Federal Empowerment Zone desired Frequently asked questions about Industrial Development Bonds

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