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1. What does "tax-exempt" mean?

2. What is the advantage for the borrower?

3. What is the interest rate for a tax-exempt IDB?

4. What types of facilities may be financed through a tax-exempt IDB?

5. What are the exceptions to financing non-manufacturing facilities?

6. Who issues tax-exempt bonds for borrowers in the City of Los Angeles?

7. What amount of time is required to complete a bond issue?

8. What type of security or collateral is required for an IDB?

9. What are the funding limits?

10. What are the terms?

11. Who are the IDA Bond Finance Team members?

12. Does the project involve a manufacturing or processing activity?

13. Will a significant portion of the project (60–75%) consist of core manufacturing or processing?

The Code limits the amount of equipment and facilities that are not directly involved in the manufacturing process to 25% of the total size of the bond issue. Therefore, a higher core manufacturing or processing percentage will result in a larger percentage of the facility qualifying for tax-exempt IDB financing.

14. Are the capital costs of the project less than $10MM?

15. Does the company have any other tax-exempt bonds outstanding?

16. Will the project result in an increase of employees, job retention or some other public benefit?

17. Will the project involve the acquisition of an existing building?

18. How will the project’s asset values be amortized?

19. Would the company otherwise qualify for a conventional bank loan?

20. Have any cost been paid with respect to the project?

21. Will the company relocate its manufacturing facilities from one location in California to another?

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