Suggested email copy for companies
Subject: Apply now: Low-interest loan to fund manufacturing expansion
Subheader: Consider Industrial Revenue Bonds to fund your company’s manufacturing expansion
For qualifying projects, WEDC’s Industrial Revenue Bond Program can serve as the source of a low-interest loan to cover the cost of a manufacturing expansion. This is a program that exists in every state and is regulated at the federal level; in recent years, Wisconsin has not used up its full allotment of these tax-exempt bonds, so WEDC is seeking to raise awareness with a goal of receiving more applications for the program this year.
When the prevailing market interest rates are low, we typically receive few applications for the program, since low-interest loans are more widely available (and Industrial Revenue Bonds are therefore less appealing in comparison, due to the procedures and documentation involved). However, with the recent rise in interest rates, we expect that this program will be of interest to more companies, since the interest rate available is more favorable relative to market rates.
Although there is no explicit limit on company size, this program is generally most attractive for small to midsize manufacturers, since the maximum bond issue amount is $10 million and the program rules limit participating companies from spending more than $20 million for capital projects during the six-year period covering the three years before and the three years after the bond issue. (Projects with an environmental purpose—such as solid waste disposal, sewage, or producing local energy or gas—are eligible for larger bond issue amounts and relaxed program rules, subject to eligibility under federal law as evaluated by the bond counsel.)
The program requires a company to cooperate with a bonding authority (a municipality, county, or local or regional development authority) and to engage bond counsel. The bond issue process may be begun at any time throughout the year, but for anyone considering using this program in the near future, we encourage starting the process before Oct. 15, since additional conditions apply from that date through the end of the calendar year.
For more information on the Industrial Revenue Bond Program, please review the attached flyer and reach out to WEDC Financial Underwriting Manager Steven Sabatke at email@example.com or 608.210.6741 with questions or to begin the application process.