What is CEDA?
What is an Industrial Development Bond (IDB)?
Why Is a Bond Better than A Conventional Loan?
What is the IDB Process?
Can you Issue Bonds for Non Profit Organizations?
What is CALED?
What is CEDA?
CEDA is the California Enterprise Development Authority. It was created to directly address gaps in Economic Development financing by the California Association for Local Economic Development. Not only is it committed to helping small and medium sized manufacturers, it can issue bonds for non profit organizations, and is a statewide clearinghouse for Economic Development financing resources. (click here for more information)
What is an IDB?
Industrial Development Bonds (IDBs) are tax-exempt securities issued up to $10 million by a governmental entity to provide money for the acquisition, construction, rehabilitation and equipping of manufacturing and processing facilities for private companies. IDBs can be issued by cities, counties, joint powers authorities (like CEDA), and the State I-Bank.
Why Is a Bond Better than A Conventional Loan?
A bond is better than a convential loan because since the interest is tax exempt, the interest rate is significantly lower than bank financing. Over a long period of time, this can mean substantial savings to the borrower, depending on the amount financed. For more information, please contact us.
What is the IDB Process?
The IDB issuance process involves a number of steps, most of which can be pursued concurrently with the bank credit approval process. The finance team will take primary responsibility for completion of these additional requirements. The entire process can be easily completed within 90 days and from the borrower's standpoint should not be much different than a conventional financing. The most frequent source of delay is, in fact, the letter of credit bank's credit approval process. (click here for more information)
Can you Issue Bonds for Non Profit Organizations?
If you are a 501(c)3, CEDA can issue bonds to build or purchase a building under certain conditions. (click here for more information)
What is CALED?
The California Association for Local Economic Development (CALED) is the premier statewide professional economic development organization dedicated to advancing its members' ability to achieve excellence in delivering economic development services to their communities and business clients. CALED's membership consists of public and private organizations and individuals involved in economic development: the business of creating and retaining jobs.
