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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?

Typical bond issues range from $2,000,000 to the federal limitation for tax-exempt IDB of $10,000,000. Within the federal Empowerment Zone, the range is $2,000,000 to $20,000,000. For qualified non-profit organizations, the range is $2,000,000 to $150,000,000 as long as the organization can service the debt. Financing will usually cover approximately 70 - 80% of the project cost or the appraised value of the underlying property.

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?

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?