CIEDA Tax-Free Bond Financing - Executive Briefing

Description

Looking to fund your capital improvement at a lower interest rate - as much as 150-300 points lower than a conventional loan?

The purpose of this program is to introduce small manufacturers, affordable housing developers, not-for-profit organizations, and units of government who could benefit from low-cost financing to the Central Illinois Economic Development Authority (CIEDA).  

CIEDA acts as an issuer of bonds, passing its DOUBLE tax-exempt status on to finance the acquisition of fixed assets including land, buildings, machinery and equipment. Because the interest on the bonds is not subject to state or federal income taxes, investors and lenders require a lower interest rate to achieve an equivalent after-tax return. Therefore, the borrower receives a preferential interest rate, generating substantial savings.

BENEFITS:

• Lower Interest Rate  - A CIEDA Double Tax Exempt Bond is exempt from state and federal income taxes, making it an attractive investment for the bondholder. The interest rate available on these bonds is far lower than conventional financing, and you can expect your interest savings to range from 150 – 300 basis points lower than a conventional loan.
• Finance up to 100% of the project cost – contingent upon meeting credit standards of a local bank backing the bond.
• Smooth Process – CIEDA has been described as a “Nimble Issuer” We have flexible guidelines and an expedited approval process. We can assemble a team of IRB specialists who have a thorough understanding of all the legal and financial aspects of this type of transaction. We'll work closely with you every step of the way, answering your questions, helping you avoid pitfalls, and making sure you get the financing that's right for you.

Andrew Hamilton is principal and co-founder of Opportunity Alliance, LLC and currently operates eleven other businesses, which include bank equity funds, consulting firms, Illinois Regional Bonding Authorities, including the executive director of Central Illinois Economic Development Authority (CIEDA). Mr. Hamilton. He has packaged more than $6.0 billion in financing since 1993. OA is a “boutique” consulting consortium that assist private firms on economic development matters including tax incentive negotiation, tax credits, tax-exempt financing and government representation services.
 

Warren Ribley, Principal, WCR Enterprises Ltd. and former director of the Illinois Dept. of Commerce & Economic Opportunity. Mr. Ribley has more than 35 years of professional experience in state government and the private sector, focusing on economic development, public policy and financial services.

This program is sponsored by the Greater Decatur Chamber of Commerce, the Economic Development Corporation of Decatur and Macon County and CIEDA.