Manufacturing Facilities

Finance Your Factory

Manufacturers have access to tax-exempt (low-interest) loans.  That means your interest rate could be up to 40% less than the market rate, which could save you tens of thousands of dollars in interest payments each year.

• What Can Be Financed?
  • New buildings and equipment used for manufacturing and the purchase of existing manufacturing facilities including equipment
• What is Manufacturing
  • Core manufacturing resulting in a change in category of personal property. Examples include turning milk into cheese; transforming rolls of paper into paper bags;
• Benefits of Tax-Exempt Financing Manufacturing
  • Higher Loan to Value (can be 100% financed)
  • Longer Terms (up to 120% of life of asset)
  • Lower Interest Rate
  • Can be combined with traditional financing
• Conditions
  • You must apply for Bond Volume Cap
  • $10,000,000 Cap on tax-exempt portion
  • $20,000,000 Cap on capital expenditures in the region within 6 years (3 forward and 3 back) of the tax-exempt financing
  • Must Use Straight Line Depreciation
  • More Details on Bonds for Manufacturing