Tax Exempt Bonds are issued by governmental entities. The proceeds are then loaned to private companies. These bonds are Industrial Revenue Bonds (IRB's) or Private Activity bonds. The interest on these bonds is generally tax-exempt, which is attractive to investors, typically resulting in lower financing costs to the company.

Communities offer bond financing to promote economic development: creating and/or retaining jobs, creating higher paying jobs and promoting industry in the community.

Eligibility

The underlying purpose of the industrial development enabling legislation is to provide or preserve employment, reduce or eliminate pollution, or to increase industry within the State of Indiana.  Any proposed manufacturing project should qualify under one of these broad categories.

Eligible Uses

• New construction
• Acquisition of real property
• Rehab or renovation of existing facilities
• Purchase of equipment

Ineligble Use

• Refinancing of existing property to obtain favorable tax exempt rate of interest

Maximum indebtedness per project: $10 million
Maximum term is 30 years

Application letter must contain:

1. Official request for issuance of revenue bonds
2. Purpose of bond issue
3. Estimated cost of project
4. Statement of net worth
5. Exact location of project (number of acres, square footage, etc)
6. Desired finance commitment, including amount and length of bond obligation, subject to investor negations
7. Employment impact
8. Relationship of proposed enterprise to current zoning
9. Any additional burden of public services, including utilities, police and fire protection

Graduated Application Fee:

• Up to $250,000: $200
• $250,000 – 500,000: $400
• $500,000 - $1,000,000: $600
• $1 mil - $2 mil: $800
• $2 mil - $3 mil: $1000
• $3 mil - $4 mil: $1400
• $4 mil - $5 mil: $1600
• $5 mil - $6 mil: $1800
• $6 mil - $7 mil: $2000
• $7 mil - $8 mil: $2200
• $9 mil - $10 mil: $2400 
   
   

Contact for Financing Information:

• Robert Mathia 574.235.5835

Economic Development
227 West Jefferson Blvd. • Suite 1200 S
South Bend, Indiana 46601
574.235.9371