Industrial Revenue Bonds for Manufacturers

About the Program

1.	Interest on bonds is exempt from federal and state income tax - resulting in lower debt service
2.	Bonds are repaid from project and/or borrower’s revenues
3.	Flexible amortization and maturity - up to 40 years or 120% of the economic life of the asset financed
4.	Bonds can equal 100% of project cost
5.	Bonds are customarily credit-enhanced when sold to the public: privately placed bonds may not require credit enhancement
6.	Bonds are customarily secured by mortgage or security interest

Eligibility:

1.	Borrower usually must be a manufacturer - eligible non-manufacturing projects include:
		Water, waste disposal, sewage, local district heating/cooling and government facilities
		501(c)(3) corporations
		Qualified redevelopment projects
2.	Total investment cannot exceed $10 million in the project town, measured over 6 years - 3 years prior to and 3 years following bond issue
3.	Must obtain CDA "Inducement Resolution" before undertaking project/acquisition
4.	A company's total bonds outstanding nationwide are limited to $40 million
5.	Restrictions:
		Bonds proceeds must be used for the acquisition of capital assets directly related to manufacturing
		Certain non-manufacturing facilities ancillary and related to manufacturing are limited to 25% of bond proceeds
		Other non-qualifying costs including cost of bond issuance may not exceed 5%

Borrower's Process:

1.	Contact:
	Karin A. Lawrence 860.258.7814
2.	Have the following available:
		Description of the project
		Breakout of estimated project costs
		Description of business and products
		3 years historic and 3 years projected capital investment

See our CDA Lending Partners

For Additional Information on all CDA Programs Contact CDA by email.

Applications:
Industrial Revenue Bond Application