Industrial Developments Bonds (IDBs) are a finanancing mechanism that Clermont County can offer businesses to decrease the cost of expansion. Businesses can use (IDBs) to pay for property acquisition or construction at below-market rates. The county issues tax-free IDBs on behalf of a manufacturing company. Because the interest earned is not subject to federal and some state income tax, the interest rate paid by the company is generally lower than traditional corporate financing.
IDBs can be used to pay for land acquisition, building acquision or construction, and financing costs. No more than 25% of the issuance may be used to purchase land. The company arranges placement with an underwriter and retains bond counsel for the issuance. Given issuance costs, IDBs usually must exceed $1 million to be cost-effective.
Approval and issuance of IDBs in Clermont County is handled by the Community Improvement Corporation (CIC). It normally takes 4-6 weeks for an IDB application to be approved. In 2005, Clermont County authorized one $1.6 million issuance for Ianelli Entreprises, a Batavia Township manufacturer of gutters, siding, windows, and roofing.
Companies interested in IDB financing should contact the Clermont County Office of Economic Development. More information about IDBs can be found at IDBFactSheet.pdf.
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