Are industrial development bonds more attractive to a certain class of business?
In order to be eligible, a business needs to operate as a manufacturer or processor. IDBs can range between $2 million and $10 million, and can be used to finance the construction or purchase of industrial plants, warehouses and distribution facilities. Beyond that, the funds can also be used to purchase equipment and machinery, expand an existing facility, or even relocate. The ultimate goal of the IDB program is to benefit local economies through job creation, keeping a business in business and generating locally based revenues. What are the benefits of industrial development bonds over other types of financing? First and foremost, a company may see cash flow savings from 15 percent to 40 percent over conventional financing through the use of industrial development bonds. The cash flow savings is a result of the low-interest environment for IDBs in which rates are running 2.6 percent lower than the average prime rate during like periods (based on average interest rates from 1982 thro
Related Questions
- Does my business have to be a certain size to qualify for financial assistance through the Town of Lockport Industrial Development Agency?
- What can be financed with Tax-Exempt Industrial Development Revenue Bonds and what benefit does it provide?
- Where do I obtain information on economic development/business assistance within the county?
