Industrial Revenue Bond financing is a method of financing in which the City of Fort Wayne can assist private business development and expansion by issuing low-interest tax-exempt bonds. The low-interest feature of industrial revenue bond financing is attributed to the fact that the interest on the bonds is exempt from federal and state income taxes.
Legislation enacted by the State of Indiana authorized the creation of economic development commissions and the issuance of Industrial Revenue Bonds. The Fort Wayne Economic Development Commission (EDC) was established in 1972 with the authority to issue tax exempt revenue bonds to assist industrial and commercial development. Operating under Bylaws in accordance with the Indiana Code, the EDC Board consists of five members with staggered terms.
The maximum bond amount available is $10 million per project, with maturity as long as 40 years. Interest rates from 65% to 75% of the prime market rate are anticipated. The actual rate is negotiated between the buyer and the seller of the bonds.
Bonds are available for 100% financing of the project, with no equity injection required.
All Industrial Revenue Bond issues must be approved against the State of Indiana's "pooled" allocation or volume cap through the Indiana Finance Authority:
IFA Volume Cap Information
For more information on Industrial Revenue Bonds, view the fact sheet.