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Manufacturing

The Florida Development Finance Corporation [FDFC] provides access to tax-exempt Industrial Development Bonds for eligible manufactures to finance the purchase of land, buildings or new equipment up to a maximum amount of $10 million in tax-exempt amount. Taxable Bonds are also available. 

Manufacturing Facilities

A manufacturing facility is defined as one, which as a “core” function, is used in the manufacture or production of tangible personal property or the processing of such property by physical or chemical change. This definition embraces the full range of operations which create goods and includes property and facilities used for on-site related ancillary office and other space.

Bond 
Financing

Industrial saw

Eligible Borrowers

Minimum Requirements: 

  • Be a US-based company. 

  • Be registered to do business in Florida. 

  • Be able to meet a minimum of 3 years of operating history

Tax-exempt Requirements for small to medium sized manufacturers:

  • Be a small business of 500 or less employees

  • There must be no more than $20 million in debt looking three years forward and three years back from the issuance of bonds. 

The benefits of using a Tax-Exempt Bond 

  • Lower Rates

    • Tax-exempt bonds generally offer lower interest rates because banks and investors are willing to accept a lower interest rate when they do not have to pay tax on the interest they receive on the bonds. 

  • Longer Terms

    • The FDFC is able to offer terms up to 35 years which lower debt service payments. 

The benefits of using a Taxable Bond

  • A taxable bond is free from most of the requirements of a Private Activity Bond. Learn more about Taxable Bonds. 

The benefits of combining Tax-Exempt and Taxable Bonds

  • In the event a portion does not qualify for tax-exempt Financing a Taxable Bond can be combined with Private Activity Bond  a a financing option.

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Manufactures can use Tax-Exempt Bond Financing to fund: 

 

  • Up to $10 million in tax-exempt amount. 

  • Purchase of land. 

  • New or existing buildings

  • New equipment

Expenditure requirements

  • At least 75% must be used for core manufacturing costs. 

  • Up to 25% can be used to purchase land. 

  • Up to 25% can be used  for "directly related ancillary"; such as office space, warehousing, or loading docks. 

Acquisition of existing facilities: 

  • Up to 15% must be spent on "qualified rehabilitation expenditures" to renovate the facilities. 

Warehouse Shelves from Above

Benefits of Bond Financing

Electric Grinder

Eligible Projects

Electrical Construction Plans

Next Steps

Wooden Boards

Connect with us

Our goal is to connect Florida Projects, here are immediate next steps to start the process: 

  • Determine capital needs. 

  • Create a financial model.

    • Determine how much debt can be supported with cashflows. 

  • Engage a financing team. 

    • Team should include a

      • Financial Advisor or Investment Banker

      • Bond Counsel

      • Corporate Counsel

      • Trustee

Connect with our office to discuss your project further and learn more.

407-712-6356

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