Manufacturing and Processing Bonds
Smaller manufacturing and processing facilities make a major
contribution to Washington's job and economic climate. Because of the importance of
these facilities, WEDFA is always anxious to help them build and expand.
Many businesses may not even know they have access to this type of
financing. The basic requirements include:
- Manufacturing or processing facility — If your project will
change physical material into something different and more valuable,
it probably constitutes a "manufacturing or processing" facility.
- Small to moderate size — If your company plans to spend less
than $20 million in total capital costs in the county where the
project is located at the time of the bond issue, it is likely to
meet this requirement.
- $10 million limit on tax-exempt bond size — The total project
amount that can be financed on a tax-exempt basis is capped at $10
million. Taxable bonds are available to finance amounts in excess of
this limit.
- $20,000,000 Capital Expenditure Limitation — The capital
expenditures for the project, when added to the borrower’s other
capital expenditures in the same public jurisdiction as the project
for the three years immediately preceding and the three years
immediately following the closing of the financing of the project,
cannot exceed $20,000,000.
- Project must finance capital costs — WEDFA finances capital
growth. If you need help with payroll or rent, there are better
resources.
- Ability to obtain commercial financing — Your company will be
the source of payment and security on borrowed money. WEDFA does not
add its own resources or security. At some point prior to a loan or
bond closing, the project and related security are required to
pass muster with those investing their money.
If you are planning to make or have recently made capital expansions
or improvements, and your company may meet these requirements, WEDFA
financing may be right for you. Apply
here.
