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MUNICIPAL BONDS


Industrial Development Bonds (IDBs) offer both taxable and tax-exempt financing for commercial and industrial development projects at favorable interest rates, usually below conventional borrowing cost.

Qualified projects must fulfill a public benefit criteria, such as job creation for low and moderate income City residents. Other necessary requirements include a history of good credit and evidence of sufficient income to service the debt.

Maximum financing participation is 80% of the project costs, or appraised value of the underlying property. The IDA has a loan assistance program, the Subordinate Loans Revolving Special Fund, which may be able to bridge a financing gap. A single bond issue may include both construction and permanent financing. Terms range from 10 to 20 years, amortized over 30 years. Capital interest only periods are permitted. Collateral normally consists of the project’s underlying real estate.

1200 West 7th Street, 6th Floor, Los Angeles, CA 90017
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