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- Industrial Development Bonds
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Industrial Development Bonds
Tax-exempt, low-cost financing solutions for your qualified capital projects
Industrial Development Bonds (IDBs)—tax-exempt securities issued by a governmental entity to finance qualified growth and expansion projects—may be a solution for manufacturing and processing companies looking to expand, improve or relocate facilities. The purchase of new equipment, the construction or acquisition of facilities and other projects intended to help drive local economic growth, might qualify for IDBs. Because the bonds are issued through the government, interest income earned by the bondholder is not subject to federal income tax, ultimately allowing savings to be passed on to the business in the form of a lower interest rate.
Experience and knowledge are essential to navigating the intricacies of IDB issuance—which is where GE comes in. GE Capital provides a streamlined, low-cost approach to IDB financing, known as a Direct Purchase IDB. In this three-party agreement between GE, the governmental issuer and the borrower, GE purchases the bonds and coordinates the transaction, reducing common legal and administrative fees associated with standard IDBs. All the while working with you to secure a financing structure that meets your company’s unique needs and expansion plans.
In addition to IDB financing, you’ll gain access to GE best practices and know-how to help build your business.