Major Business Expansion Bond Program

The Major Business Expansion Bond Program provides long-term, credit-enhanced (by FAME) financing up to $25,000,000 at taxable bond rates for projects that create or retain 50 or more jobs. Manufacturing expansion projects may be eligible for long-term, tax-exempt bond rates on bonds of up to $10,000,000.

Eligibility

  • Any business that can demonstrate a strong likelihood of repayment based upon historical capacity to service the proposed bond debt, value of collateral or other sources.
  • A business must create or retain at least 50 jobs.
  • Bond proceeds may be used to acquire real estate, machinery, equipment or fixtures, or expand or rehabilitate a facility.

Loan Amount/Exposure

  • $1,000,000 – $25,000,000 taxable debt for job creation or retention programs.
    or
  • $1,000,000 – $10,000,000 tax-exempt debt for manufacturing projects.

Interest Rate

  • Determined by market and/or credit provider at the time of bond sale or placement.

Loan Term

Determined by the useful life of the assets being financed, credit provider and tax code, if applicable.

Security

First security interest in the assets being financed, plus other collateral and guarantees determined to be necessary by FAME. Bonds are backed by moral obligation authority of the state through a capital reserve fund.

Fees

Applicaton fee: 1%

First-year commitment fee: 1%

Annual insurance fee: up to 2%

Additional Information

Borrowers may be required to fund a capital reserve account with bond proceeds or other funds.

Process

Borrowers considering applying under this program should contact FAME for advice on program requirements and applicability to the project.

Contact

FAME