Industrial Revenue Bonds

PURPOSE
Benefits manufacturing companies by providing low cost capital for land, acquisition, construction, and renovation of facilities and equipment. The Schuylkill County Industrial Development Authority was created to provide a vehicle for securing tax exempt financing through private sector sources. Lenders benefit from interest rate exemption from certain state and federal taxes; borrowers benefit because of the lenders ability to lend at a lower interest rate than conventional interest rates. Loan proceeds can only be used for manufacturing projects and can cover building acquisition, new construction and renovation costs, as well as machinery and equipment. Rates and terms are subject to market conditions and I.R.S. regulations. Security for the loan is negotiated directly between the company and the lender or underwriter. A $10 million single project limit and a $40 million aggregate limit apply. Due to recent changes in Federal tax regulations, financing under this program should be discussed with both legal and tax advisors prior to application submission. The normal application processing time is about 45 days.

Our colleagues at the Chester County Industrial Development Authority have compiled information about tax exempt financing in greater detail here.