BONDS

BONDS

SWIDA finances development through the sale of both taxable and tax-exempt bonds in Bond, Clinton, Madison & St. Clair counties in southern Illinois for:

Projects ranging from $800,000 to $40 million,
Low interest rates,
Periods as long as 40 years,
A quick and easy double tax-exempt program for local governments, and
Lease-purchase financing for everything from fire trucks to a new city hall.

Who can borrow?

Cities, villages, towns or townships of any size in SWIDA’s jurisdiction
School Districts
Fire protection districts
County governments
Community colleges
Library districts
Park districts
Water and sewer districts
Public building commissions
Manufacturing businesses
Commercial businesses
Office and research facilities
Distribution facilities
Qualified non-profit entities
Airports
Ports
Industrial sewage and solid waste facilities

Description:

SWIDA issues Industrial Development Bond (IDB) financing, also called Industrial Revenue Bond (IRB) financing, which involves the issuance of "tax-exempt" or "taxable" bonds to finance manufacturing, distribution, commercial, office or research facilities and/or equipment to be owned or used by a company. Federally tax-exempt IRB's are now available to assist manufacturing businesses, qualified non-profit entities, various "exempt facilities" such as airports, ports, and industrial sewage and solid waste facilities.

SWIDA also issues Local Government Revenue Bond Program to assist units of local government, including school districts, in financing capital improvement projects. SWIDA issues tax-exempt securities in the municipal market and uses the proceeds of this sale to purchase securities issued by a local government. The local government revenue bond program provides local government units with the opportunity to achieve interest cost savings and to structure flexible loan repayment terms. These additional cost savings are available on local government revenue bonds issued only through SWIDA and sold in Illinois. Local governments save tax dollars through lower interest rates paid on bonds sold in Illinois.

Highlights and Benefits:

Additional benefits of issuing debt obligations through SWIDA include:

Exemption from both federal and state income taxes
Access to credit enhancement through a “tax intercept” mechanism
Access to creative financing options
Attentive finance professionals and quick turn-around time
Long term; typically 15 – 20 years
An interest rate 1 – 2.5% below conventional rates

Type of Financing:

Borrowers may obtain fixed or variable-rate financing through SWIDA.

Eligibility:

Any unit of local government that is entitled to issue debt obligations under Illinois law is permitted to issue its debt obligations through SWIDA. Qualified local government units include counties townships, municipalities, schools and fire protection, sanitary, park and other special purpose districts.

Industrial Development Bond (IDB) financing also called Industrial Revenue Bond (IRB) financing, involves the issuance of "tax-exempt" or "taxable" bonds to finance manufacturing, distribution, commercial, office or research facilities and/or equipment to be owned or used by a company. Federally tax-exempt IRB's are now available to assist manufacturing businesses, qualified non-profit entities, various "exempt facilities" such as airports, ports, and industrial sewage and solid waste facilities.