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Industrial Development Bonds (IDBs)
  • 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
  • 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
    • State Treasurer's Office allocation on a competitive scoring basis
  • Maximum Bond Size
    • $10 million over a 6-year period, three (3) years prior to and three (3) years after bond issuance
  • Target Borrowers
    • Manufacturing or value-added operations
    • Established business for more than ten (10) years
    • Annual sales between $7.5 - $20 million dollars
    • Fewer than 100 employees

1200 West 7th Street, 6th Floor, Los Angeles, CA 90017
213-744-7111 | 213-744-9395 (TTY) | 213-744-9382 (Fax)

 

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