Bond Financing
Financing For For-Profit Businesses
For more capital-intensive projects, GOED offers a pooled bond program through the Economic Development Finance Authority (EDFA). The Economic Development Finance Authority prides itself on maintaining its “AA” rating by Standard and Poor’s, and as a result, can offer lower interest rates to borrowers. Bonds can be issued individually or pooled together to help lower the cost of the issuance. The program is open to all for-profit businesses that are engaged in industrial operations, ag processing or manufacturing.
How It Works
Bonds can be either taxable or tax-exempt. To qualify for tax-exempt financing, the borrower must be a manufacturer and total project costs must be less than $20,000,000. Bond proceeds can be used to finance 80% of new construction or purchase an existing building, and 75% of new equipment costs, with no greater than 25% of the bond proceeds being used for ancillary activities such as office or inventory space.
How It Works
Bonds can be either taxable or tax-exempt. To qualify for tax-exempt financing, the borrower must be a manufacturer and total project costs must be less than $20,000,000. Bond proceeds can be used to finance 80% of new construction or purchase an existing building, and 75% of new equipment costs, with no greater than 25% of the bond proceeds being used for ancillary activities such as office or inventory space.