Rhode Island manufacturing and commercial enterprises can benefit from bond financing as a cost effective way to stay competitive as they branch out. The Commerce Corporation helps businesses understand the wealth of information on bond financing.
Overseen by the R.I. Industrial Facilities Corporation (RIIFC), Rhode Island offers both taxable and tax exempt bonds to businesses. Commerce Corporation staff can discuss eligibility, project requirements, and other details with businesses considering bond financing. Here is an overview of the types of bonds Rhode Island offers:
Tax Exempt Bonds
RIIFC issues tax-exempt revenue bonds for companies exploring various manufacturing projects with a $20,000,000 maximum limit per project. The bond can cover up to 100% of the cost for a manufacturing project including land, new machinery and equipment, building costs and certain eligible “soft” costs. Interest rates are tax exempt and are determined by the market.
RIIFC offers taxable bonds for businesses that want to branch out into a commercial enterprise, including building tourist-travel facilities. These bonds are almost identical to the tax-exempt bonds, but they are taxable for financing fixed commercial assets such as land, building, machinery and equipment, and related “soft” costs. The limit per project is usually established by the bond purchaser or credit enhancer.