Industrial Development Revenue Bonds (IDRB)
IDRB financing is a federal program, administered by the state at the local level. The bonds can be used for the purpose of financing or refinancing expansion of two types of companies: manufacturers and non-profit organizations. Bond financing can provide up to 100 percent funding of a qualified project within federally specified dollar limits. IDRBs are beneficial to qualified companies as they are longer term and available at a lower interest rate than most commercial loans. The interest on the bonds has preferable income tax treatment by the IRS and those savings are passed along to the user. Like commercial loans, IDRB approval is related to the company’s credit worthiness.
Do We Qualify?
Existing manufacturers and not-for-profit corporations are eligible to apply. Applicants need to demonstrate that IDRB financing would fund business expansion projects within the Orlando region. Projects must be economically beneficial to the county, provide gainful employment, and protect the environment, as well as the general welfare and public health of the state of Florida. Commercial and industrial applicants must also demonstrate that at least 75% of the space/facility built using IDRB funds would be used for core manufacturing. It is recommended that applicants consult with bond counsel to determine eligibility.
How do we apply?
The Orlando Economic Partnership serves as the point-of-contact for bonds in Orange and Seminole Counties. Determine in which county the facility will be located and refer to that county’s bond application guidelines listed to the right under “Downloads.”
Note: For Osceola County, IDRB information is available through the county’s economic development department.
Contact a certified bond counsel to work with you and the Partnership throughout the application process.
Submit required number of copies of the application and the application fee of $1,500 to the Partnership three weeks prior to a regularly scheduled meeting.
Orange County: Meets every 3rd Tuesday of every month, 2 p.m.
Orange County Admin. Building, 3rd Floor, Conf. Room B
Orlando, FL 32801
Seminole County: Meets every 3rd Tuesday of every month, 8:30 a.m.
Orlando EP, Seminole County Office
1055 AAA Drive, Suite 142
Heathrow, FL 32746
What happens next?
The Partnership submits qualified applicants to the Industrial Development Authority (IDA), who will assist in the review and approval of the bond resolution.
IDA approved applications are submitted to the appropriate County Commission for final approval.
What is the minimum/maximum Bond amount?
The minimum is $1.25 million. The maximum for manufacturers is $10 million; no maximum for 501(c)3 not-for-profit organizations. Provided that the total of all of the borrower’s capital expenditures during the period beginning 3 years prior to the issuance of the bonds and ending 3 years after the issuance of the bonds with respect to the borrrower’s facilities within the local jurisdiction, plus the amount of the bonds, will not exceed $20 million. No limit for tax-exempt organizations. Note: 501(c)6 do not qualify.
What is the interest rate?
Typically below conventional commercial lending rates.
How long is the term?
Up to 30 years.
Enterprise Florida Bond Program
Available for manufacturing projects between $800,000 and $2 million. The guidelines are similar to the regular Industrial Revenue Bond Program. These issues are pooled with other projects and approved on a quarterly basis.
Additional Financing Sources
Companies at every stage have numerous resources available to finance their business, from government funding to regional matching grants to bonds. Both Florida and Orlando are also home to venture capitalists, angel investors as well as commercial banks.
Orlando is home to many sources of private capital including venture capital, angel investors, start-up financing and small business investment companies.
Federal, state and local grant programs that provide funding for small businesses and start-ups.
Grants support industry-university research projects and SBIR/STTR awards in which one of the three participating universities is a partner.
Learn more about if you qualify for bonds in Orange and Seminole counties in the Orlando region.