Wednesday, October 12, 2011

Development finance: Industrial Revenue Bonds

Industrial Revenue Bond (IRB) Program The Department of Commerce's Industrial Revenue Bond (IRB) Program allows all NC cities, villages and towns to support industrial development through the sale of tax-exempt bonds. The proceeds from the bond sale are loaned to businesses to finance capital investment projects at, primarily, manufacturing facilities. Even though IRBs are municipal bonds, they are not general obligations of the municipality. The company or business that will use the facilities provides the interest and principal payments on the loan. The local government is in partnership with the business, lending its name, but not its credit, to the bond issue.

Revenue from financed projects
Legal projects
Projects that generate revenues (GS 159-81) and Special Assessment projects (GS 153A, Art 9A; GS 160A, Art 10A )  (County landfill)
Feasible projects
Projects that generate sufficient revenue (hospital expansion)
Voter approval
LGC approval
Bond counsel
Public or private sale
Usually public or USDA
Method of sale

Learn more about submitting an application here:

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