South Bend offers bond financing to promote economic development, creating and/or retaining jobs, creating higher paying jobs and promoting industry in the community.
Industrial Revenue Bonds (IRBs) or Private Activity bonds, are tax-exempt bonds issued by government entities, with the proceeds loaned to private companies. The interest on the bonds is typically tax-exempt, making them attractive to investors and resulting in lower financing costs to the company.
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 for IRBs include:
- New construction
- Acquisition of real property
- Rehab or renovation of existing facilities
- Purchase of equipment
Refinancing of existing property to obtain favorable tax exempt rate of interest is not an eligible use of IRB financing.
Maximum indebtedness per project: $10 million
Maximum term is 30 years
For more information about IRB financing, or to submit an application, e-mail Kathy Hahn, or call 574.235.9278