Is Tax Exempt Financing an Option for your Manufacturing Business

June 7, 2016
Is Tax Exempt Financing an Option for your Manufacturing Business

Do you own or operate a manufacturing business? Are you acquiring additional property or new property, renovating your facility, acquiring expensive equipment? If you require financing for these purposes and if you will be borrowing $2,000,000.00 or more then tax exempt financing may result in savings to you.

I can provide direction through the process and help you find a lender that issues tax exempt financing, if yours does not. Typically your interest rate will be reduced by thirty (30) basis points as a result of tax exempt financing. An Industrial Development Authority would be involved in the process in order to facilitate the issuance of tax exempt debt.

If you are considering issuing a very large amount of debt, a bond issuance may be more appropriate than a negotiated loan with a bank. This can also be accomplished on a tax exempt basis. These types of financing generally have somewhat higher upfront costs which are recaptured through the lower interest rate structure.

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