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Bond Financing

R.I. Industrial Facilities Corporation (RIIFC) offers both tax exempt bonds and taxable bonds to businesses.

Tax Exempt Bonds

RIIFC issues tax-exempt revenue bonds for companies exploring various manufacturing projects with a $20,000,000 maximum limit per project. The bond can cover up to 100% of the cost for a manufacturing project including land, new machinery and equipment, building costs and certain eligible "soft" costs. Interest rates are tax exempt and are determined by the market. Building materials purchased for projects may be eligible for exemption from Rhode Island sales tax.

Taxable Bonds

RIIFC offers taxable bonds for businesses that want to branch out into a commercial enterprise, including building tourist-travel facilities. These bonds are almost identical to the tax-exempt bonds, but they are taxable for financing fixed commercial assets such as land, building, machinery and equipment, and related "soft" costs. The limit per project is usually established by the bond purchaser or credit enhancer.

Program
Tax Exempt Bonds
Taxable Bonds
Eligible Applicants
Manufacturing Projects
Manufacturing and selected commercial facilities, including travel-tourist facilities.
Dollar Limit per Project
Maximum limit prescribed by IRS. Normally to $20 million, $10 million one year, $20 million any three years.
Maximum limit established by bond purchaser or credit enhancer.
Maximum Limit % of Project Cost
Up to 100%
Up to 100%
Approved Use of Funds
To finance fixed assets for a manufacturing project; land, building, new machinery & equipment, certain eligible "soft" costs.
To finance fixed assets for a manufacturing project; land, building, new machinery & equipment, certain eligible "soft" costs.
Interest Rates
Floating or fixed rate determined by market
Taxable rate, normally floating, dependent on lender
Term of Repayment
Dependent on bond purchaser. Normal Terms: 25 years for real estate, 20 years machinery & equipment
Established by lender. Normal Terms: 25 years on real estate, 20 years machinery & equipment
Form of Financing
RIIFC issues tax-exempt revenue bonds without guarantee or insurance for applicant. Building materials purchased for projects may be eligible for exemption from RI sales tax.
RIIFC issues taxable revenue bonds without guarantee or insurance for applicant. Building materials purchased for projects may be eligible for exemption from RI sales tax.
Application Fee
$1,000
$1,000
Commitment Fee
None
1%
Administrative Fee
1/8 of 1% annually on outstanding principal balance.
1/8 of 1% annually on outstanding principal balance.

RIIFC Bond Financing Explanation