The Economic Development Authority (EDA) offers affordable bond financing solutions to credit-worthy companies seeking financing for capital improvements and expansions. It provides a link from Main Street to Wall Street for small and mid-sized companies in New Jersey and certain nonprofit organizations, giving them access to capital they can't obtain on their own and enabling them to borrow money more cheaply.Financing raised through bond issues offers several advantages:
- Lower interest rates than a conventional bank loan
- Longer terms than a traditional commercial loan
- Flexibility in choosing a variable or fixed interest rate
What is tax-exempt bond financing and who can use it?
Interest income earned by purchasers of tax-exempt bonds is exempt from both federal and state income taxes. These savings are passed on to borrowers in the form of below-market interest rates.
Qualified borrowers or uses include:
- Manufacturing facilities
- Governmentally owned public airports, docks and wharfs
- Water and sewer services, sewage disposal facilities, solid waste disposal facilities, electric and gas furnishing facilities and qualified hazardous waste facilities
- Certain nonprofit 501(c)(3) entities, including service organizations, educational institutions and health care facilities
- Commercial and industrial projects located in federally designated Empowerment Zones or Enterprise Communities.
- Certain assisted living facilities, which qualify as residential rental projects
- Municipal governments and other governmental entities
To learn more or to get information about how you may qualify for one of EDA’s bond financing programs call 866-534-7789.
