Tools for Success

1. The bond program is like receiving a commercial loan as it relates to credit worthiness. It is not a government loan, incentive or grant program.

2. The advantage of industrial revenue bonds is that they can be issued for a longer term and at a lower interest rate. The interest on the bonds has preferable income tax treatment by the IRS. The subsequent savings are passed along to the user.

3. Qualified projects include manufacturing, health care, pollution control equipment, and some other non-profit uses.

4. Interested parties should contact a qualified bond counsel who should then contact the Economic Development Department regarding specific county guidelines.

5. Interested parties should contact a potential bond purchaser (bank, insurance company or investment company) to determine the viability of the project. The program is a small issue program which means projects must be under $10,000,000 with a sic (6) year limitation on capital expenditures.

6. The county’s industrial development authority schedules monthly meetings in advance. Application must be received three weeks prior to the meeting to comply with state and federal laws (TEFRA).

7. An application fee must be paid with the application. After final approval of the issue by the bond authority, the action must also be approved by the local government entity in which the project is located.

8. Currently the IDA fees include a non-refundable $1,500 application fee due and payable with the application for the issuance of the Authority’s industrial development revenue bonds. Also, a financing fee of one-half of one percent of the first $4,000,000 and one-fourth of one percent of the remaining face amount of the bond issue is due and payable from the bond proceeds on the date of the bond issue closing.