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 Through our membership to the California Enterprise Development Authority, a Joint Powers Authority established to address gaps in Economic Development financing, San Jose offers the Industrial Development Bond program to manufacturers throughout the city. Industrial Development Bonds (IDB's) are designed to encourage growth and business investment by manufacturers of both tangible and intangible products.
The advantage that IDB's have over conventional methods of financing is that they carry significantly lower interest rates. The interest paid to the bondholders is tax exempt. IDB rates historically have average 1.5% to 2% below the prime rate. Eligible manufacturers can use the low cost bond proceeds to finance virtually all costs incurred by the company for its project including the financing of land acquisition, rehabilitation or construction of building, machinery and equipment and other incidental costs as wells as a portion of the expenses associated with the finance and issuance of the bond.
Limited to $10 million per applicant per jurisdiction including all capital expenditures made by company in the same jurisdiction 3 years prior and 3 years forward. A tax-exempt bond may be combined with a taxable bond, but total capital expenditures is limited to $20 million.
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Nanci Klein
Chris Burton
John Lang