Industrial Revenue Bonds
Industrial Revenue Bond financing is a method of financing which the City of Anderson can help private business development and expansion by issuing low-interest tax exempt bonds. The low-interest feature of Industrial Revenue Bond financing is attributed to the fact that interest on the bonds is exempt from federal and state income tax.
The Program:
The Anderson Economic Development Commission was established in 1975 with the authority to issue tax-exempt revenue bonds to help industrial and commercial development. In 1985, the Anderson Economic Development Commission (AEDC) granted final approval to more than twenty million dollars in Industrial Revenue Bonds. The maximum bond amount available is ten million dollars per project, with maturity up to 30 years and interest rates ranging from 75% to 85% of the prevailing prime market rate. Bonds are available for 100% financing of the project with no equity injection required. Bonds may be used for the purchase, contruction, renovation or improvement of manufacturing plants, industrial site development, warehouses, distribution facilities and pollution control without consideration of location within the city. Bond application for retail and commercial facilities will be considered if they are located in the Anderson Enterprise Zone or other "Economic Development Target Areas." These bonds may also be used with other economic development programs.
The Process:
The programs of tghe AEDC are incentives to attract new business and retain existing business in the Anderson area. The AEDC willa ccept applications for a wide range of uses. However, the Commission is particularly interested in encouraging those projects that create new permanent jobs or preserve existing jobs. By law, in Indiana, the Commission also must consider any possible "Adverse Competitive Effects" upon similar existing or planned facilities.
Several of the attractive aspects of Industrial Revenue Bonds include:
- Rapid issue process
- 100% financing of projects
- Favorable interest rates and up to a 30-year term on loans.