Details | Industrial Development Bonds


Funder

 

California Statewide Communities Development Authority

Implementer

 

California Statewide Communities Development Authority

Description

 

CSCDA can assist eligible manufacturers to finance capital projects through the issuance of tax-exempt Industrial Development Bonds (Bonds). A manufacturer can finance projects at a lower interest rate than conventional financing because the interest paid to the bondholders is exempt from federal (and in some instances state) income taxes. Eligible manufacturers can use the low-cost, bond proceeds to finance the acquisition and rehabilitation, or construction of manufacturing facilities. Bond proceeds may also be used for the acquisition of new equipment. In addition to its traditional Industrial Development Conduit Bond Program, CSCDA offers a Small Issue Public Benefit Program designed to cost-effectively assist manufacturers with projects or new equipment purchases of less than $5 million. CSCDA will work directly with the borrower to privately place the Bonds with a qualified institutional buyer. The advantages of the Small Issue Program include low-cost access to tax-exempt markets, predetermined finance team and a fixed interest rate. To reserve the right to issue tax-exempt industrial development bonds, CSCDA and the manufacturer must file an application with the State of California to secure an award of volume cap. CSCDA staff will guide each developer through the state application process. Since inception, CSCDA has issued over $473.7 million in Bonds for more than 170 manufacturers throughout California, including over $149.4 million for more than 69 equipment only purchases.

Funding guidance

 

Applications open

 

None

Applications close

 

None

Type

 

Bond

Category

 

Financing

Territory

 

California

Applicant type

 

For Profit

Project

 

New Addition to an Existing Building  |  Real Estate and Asset Purchases  |  Rehabilitation of Existing Whole Building  |  Rehabilitation of Part of an Existing Building  |  Whole New Building Construction

Sector

 

Industrial

Sub-sector

 

Industrial

Sustainability

 

Energy Efficiency for Processes  |  Energy Efficiency in Buildings  |  Energy Management System  |  Energy Storage  |  Generation Systems  |  Water Use Reduction

Additional website

 

Small business

 

False

Disadvantaged communities

 

False

Cost sharing amount

 

None

Cost sharing percent

 

None

Cost sharing note

 

Minimum repayment years

 

None

Maximum repayment years

 

None

Interest rate comment

 

Incentive