Empowerment Zone Bonds (EZBs)

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 The City has its own $230 million Empowerment Zone allocation through 2009 Requirements Must be located within the City's 19 square miles of the Federal Empowerment Zone 35% of employees must reside within the Empowerment Zone Must meet all other EZ 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 Requires State Treasurer's Office approval to use our own allocation Annual job creation/retention certification and monitoring thru 2009 Maximum Bond Size $20 million Target Borrowers Established business for more than ten (10) years Annual sales between $7.5 - $20 million dollars Fewer than 100 employees Almost any business activity qualifies, except housing Los Angeles Federal Empowerment Zone Map

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