Pinellas Industrial Revenue Bond (IRB) Financing Program
Tax-exempt Industrial Revenue Bonds (IRBs) are a type of municipal bond issued by state and local governments that offer below-market-rate financing to qualified private enterprises. These bonds are payable from and secured by the revenues of the projects they finance. Currently, small issue IRB uses are limited and are usually for manufacturing projects. The program provides long-term, low cost, fixed rate loans of $1 million to $10 million.
The Pinellas County Economic Development Authority (PCEDA) is authorized by Chapter 159, Part II and Part III, Florida Statutes (the “Act”) to issue Revenue Bonds for qualified projects. Certain procedures as set out in Florida and Federal law must be adhered to in order to secure and maintain the exclusion from gross income for federal income tax purposes of the interest on the bonds.
- Provides tax-exempt financing to finance land and depreciable property for eligible industrial, manufacturing and non-profit projects.
- Long-term financing at interest rates lower than conventional financing.
- The facility being financing must be for manufacturing purposes or a 501(c)(3) organization.
- Use of funds must be for land, buildings (new or existing) and new equipment.
- IRBs cannot be used for inventory, working capital or refinancing of existing debt.
- Maximum permitted project size is $10,000,000 for manufacturing facilities.
- No minimum project size, but $1,000,000 is considered the minimum economically feasible.
Program Application Requirements:
- Completed IRB Eligibility Questionnaire (PEQ).
- Copy of your company’s certified financial audit statements for the last three years.
- Copy of your company’s current balance statement.
- Application fee in the amount of $2,000.
- Letter of commitment from the bank/investment firm that will be purchasing the bonds.
Florida Development Finance Corporation
The Florida Development Finance Corporation (“FDFC”) is a state authorized issuer of industrial revenue bonds and does not receive state appropriations. FDFC issues bonds in counties throughout Florida through interlocal agreements. FDFC supports economic development by assisting for-profit and not-for-profit businesses with access to capital for project financing. The primary mechanism for accessing the capital markets is tax-exempt and taxable bonds.
Learn more at www.fdfcbonds.com