• Is manufacturing or processing the primary business activity?
• Will at least 60% of the "project" involve equipment or facilities directly related to manufacturing or processing?
• Is the "project cost" under $20 million? (including all capital expenditures for the three years before and after the bond issuance)
• Can the company obtain a bank Letter of Credit to support the IDB issue? (If the company qualifies for a conventional bank loan, it should be able to qualify for a bank Letter of Credit.)

I answered "yes" to all of these questions.

I answered "no," click here.

• Additional Issues - Further considerations include:
• Has the company expended any funds for project costs to date? Project costs incurred more than 60 days prior to beginning the IDB application process are not eligible to be paid with bond proceeds.

• Tax treatment: Depreciation of financed equipment or facilities must use the straight line method (no accelerated depreciation).
• Industrial development bond funded construction projects are subject to prevailing wage.

• Are you a 501(c)3?

• Are you building or purchasing a building?
• Will the building be occupied by a 501(c)3 or a public agency?
• Are you purchasing equipment?

I answered "yes" to all of these questions.

I answered "no," click here.

• Additional Issues - Further considerations include:
• Bond proceeds can be used to fund the acquisition/development of capital assets (i.e. real estate and equipment) that further the nonprofit goals of the organization.
• Examples of potentially qualified nonprofit organizations:
  -- Private-schools
  -- Health clinics & health care facilities
  -- Animal care facilities - SPCAs & Humane Societies
  -- Cultural & arts facilities.