| |
|
| CALUMET
CITY DEPARTMENT DIRECTORY - COMMUNITY & ECONOMIC DEVELOPMENT |
|
DCCA - Financing
Incentives
IDFA Illinois Development Finance
Authority Summary of IDFA Financing Programs
Business Financing Programs
Industrial Revenue Bonds
Financing for manufacturing facilities for acquisition
of land, buildings, and equipment.
Projects: Can be used for manufacturing projects between
$1.5 million and $10.0 million (subject to IRS capital
expenditure limitation). (Occasionally, small projects
between $1.0 million and $1.5 million can also be financed
if issuance costs are controlled.)
Structuring Requirements: Requires bank participation
for 100% of bond amount.
Advantage: Provides access to borrowing at interest
rates significantly below Prime.
Exempt Facilities Bonds
Financing for privately owned solid waste disposal facilities,
wastewater treatment facilities, and water supply facilities.
Projects: Can also sometimes be used to finance a
portion of a manufacturing project, when aggregate project
amount exceeds $10.0 million IRS capital expenditure test.
Structuring Requirements: Generally requires
bank participation or municipal bond insurance for 100%
of bond amount.
Advantage: Provides access to borrowing at interest
rates significantly below Prime.
Participation Loans
IDFA interest-rate "buy-down" program on a portion of
a commercial bank loan for manufacturing companies.
Projects: Can be used to purchase the lesser of
50% or $300,000 of a conventional bank loan for a manufacturing
project.
Structuring Requirements: IDFA purchases a participation
in a portion of a bank loan (subject to program parameters).
Bank has the option to retain up to 0.50% of the 1.50%
interest rate savings (attributable to the IDFA participation)
to cover administrative costs.
Advantage: Provides borrower with an interest rate
on IDFA participation amount that is 1.00% to 1.50% below
the participating bankšs loan rate. (Example: results
in savings of up to $4,500 annually on a $300,000 IDFA
Participation purchased in a bank loan of $600,000 or
more.)
Other IDFA Bond Financing Programs
501(c)(3) Revenue Bonds
Financing for acquisition of land, buildings, and equipment
by 501(c)(3) not-for-profit corporations.
Projects: Can be used for projects of at least
$1.5 million (no legal maximum). (Occasionally, small
projects between $1.0 million and $1.5 million are also
financed if issuance costs are controlled.)
Structuring Requirements: Generally requires bank
participation for 100% of bond amount.
Advantage: Provides access to borrowing at interest
rates significantly below Prime.
Local Government Bonds
IDFA provides State of Illinois Tax-Exempt Status on Local
Government General Obligation bond issues for capital
improvements.
Projects: Any capital, infrastructure, or public
works project for units of local government (e.g., municipalities
and school districts).
Structuring Requirements: IDFA can only purchase General
Obligation debt from Local Governments. Structuring Advantage:
IDFAšs statutory State Revenue Intercept can help less
creditworthy borrowers obtain municipal bond insurance.
Advantage: Lower interest rates since Bonds are
exempt from State of Illinois income taxes.
Fre$hRate Taxable Bond Pool for Home Mortgage Loans
IDFA taxable bond program that capitalizes a home mortgage
financing program that provides 4% down payment assistance
grant for home purchasers.
Projects: Loans are originated through participating
Illinois home mortgage lenders. (Andrew
Charles, Berkshire, CasBank, CNI Mortgage, Draper & Kramer,
First Mortgage, Irwin Mortgage, Lincoln Mortgage, Malone
Mortgage, Midwest Funding, Midwest One, Mortgage Corp.
Of America, National Mortgage, North American Mortgage,
Platinum, Temple-Inland, United Financial)
Structuring Requirements: Participating home purchasers
must generally earn less than 125% of median State or
County income and must qualify for FHA/VA, RHS, or conventional
mortgage financing (subject to program criteria).
Advantage: Provides borrower with a grant to cover
4% down payment, thereby enabling home ownership with
almost no borrower equity.
IIDFA Technology Development
Bridge for Venture Capital
Provides seed stage equity financing for high technology
companies
Projects: IDFA matches new private investment.
Typical IDFA investment ranges from $150,000 to $300,000.
Advantage: Helps leverage private venture investment
by accredited venture capital investors.
For more information: visit the Illinois Development
Finance Authority Web Site
www.idfa.com
DCCA Department of Commerce and
Community Affairs
Summary of DCCA Incentive Programs
The Illinois Department of Commerce and Community Affairs
has a number of programs and services in place to assist
in attracting and retaining Illinois businesses. For Business
Development, following are some of these programs:
Participation Loan Program - DCCA works with banks
and other conventional lenders to provide financial assistance
to small businesses that will employ Illinois workers.
The State will participate in loans up to 25 percent of
the total amount of a project, but not less than $10,000
nor more than $750,000. DCCA participates with Development
Corporations (Loan Program) to provide the same basic
loan program in the region served by that Development
Corporation. The Minority, Women and Disability Participation
Loan Program is similar to the Participation Loan
Program except that participation may not exceed 50 percent
of the total project, subject to a maximum of $50,000.
For more information on all three programs call 312-814-2308
in Chicago or 217-782-3891 in Springfield, IL.
The Industrial Training Program assists Illinois
companies in training new workers and retraining/upgrading
the skills of their existing workforce. ITP grants may
be awarded to individual companies, as well as to intermediary
organizations offering training to meet the common training
needs of multiple companies. For information call 312-814-2809
or 217-785-6284.
The First-Stop Business Information Center of Illinois
provides individuals and businesses with access to information
and referral assistance to guide them through the permitting,
licensing and regulatory processes. First-Stop also can
link them to other available resources that can help them
comply with government regulations and enhance their competitiveness.
For information call 800-252-2923.
Illinois F. I. R. S. T. (Focused Industrial Retention
Support Team) brings together the resources of DCCA and
Argonne National Laboratory, NORBIC (North Business and
Industrial Council), Chicagoland Enterprise Center, ComED,
Peoplešs Gas and the Chicago Tribune to identify and assist
manufacturers interested in expanding, modernizing, relocating,
training, retraining and developing new technologies.
The team is supported by many private volunteers and professional
technical service providers. The public/private partnership
provides information and technical assistance to the Northern
Illinois industrial base in a way that promotes Illinois
positive business climate. For information call 312-814-5252.
For more information, visit the State of Illinois Department
of Commerce and Community Affairs Web Site at www.commerce.state.il.us
IDCEO- Illinois Department of Commerce and Economic
Opportunity
Many programs and resources sponsored by the State of
Illinois and by our Governor are listed at this website
www.illinoisbiz.biz
|
|
|
