The Florida Development Finance Corporation (“FDFC”) was formed in 1993 as a special development financing authority. We support economic development by assisting for-profit and not-for-profit businesses with access to capital for project financing. The use of these funds may be eligible to finance or refinance up to 100% of the cost of acquisition, construction, and equipping of land, facilities, equipment and other costs needed for the project. The primary mechanism for accessing the capital markets is tax-exempt and taxable bonds.
Financing with bonds through FDFC provides companies with several unique advantages over conventional loans including:
Depending on the type and complexity of a bond deal, the ability to accessing the capital markets can require several steps (TEFRA Hearing, Private Activity Bond Allocation, Bond document approval, etc.) The FDFC operates at the speed of business. We will work with your team of finance professionals to move through the bond approval process in a timely and efficient manner.
Multiple project locations
Unlike most local Industrial Development Authorities with jurisdiction on one county, the FDFC is a state-wide conduit issuer and best suited for financings in multiple jurisdictions.
Lower overall cost
Financing through FDFC allows qualified business and organizations to acquire capital investments with the added benefit of untaxed interest. Bonds issued to such enterprises are not subject to federal income tax and may also benefit from exempts of certain state and local fees, like documentary stamp and intangible taxes. Over the life of a bond, businesses can expect to see substantial savings on interest, a benefit not afforded by bank loans. For projects that do not meet IRS requirements for tax-exempt financing, FDFC also offers taxable bonds at rates which are highly competitive compared to traditional financing options.
Financing that fits
FDFC-issued bonds may offer borrowers a level of convenience unmatched by standard bank loans. The Borrower’s financing team can structure bond with versatile terms of maturity allow for long-term repayment options which can help improve cash flow during a project’s initial phases. Bond rates can be flexible as well, with attractive fixed-rate financing available for many applicants. Additionally, companies may finance up to 100 percent of project costs, including the expenses of bond issuance.