California Boosts Its Bond Program
Through the program’s small-issue IDBs, CEDA can access the increased funding limit of $150 million to finance projects statewide to support expansions of existing manufacturers as well as create much needed jobs in today’s economy. Manufacturers can use these tax-exempt, private-activity bonds, which are issued through state and local governmental agencies like CEDA, to assist in purchasing facilities and financing capital expenditures.
Wayne Schell, president of the California Association for Local Economic Development and Chairman of the CEDA Board of Directors, praised the Treasurer’s Office for “gearing up to help small- to mid-sized manufacturers in California in a difficult lending environment. This shows the state is working proactively to continue its support of California manufacturers, despite the current economy. The IDB program is an excellent economic development financing tool.”
Manufacturers interested in tapping these funds must be credit worthy and meet other state and federal requirements. However, according to Dan Bronfman, president of Growth Capital Associates, Inc., “In most cases, the approval process is worth the effort when you realize how much a business owner can save with an IDB versus a conventional loan. Since this program is aimed at helping mid-sized manufacturers, it supports a critical segment of California businesses.”