JEDA Industrial Revenue Bond Program

South Carolina Jobs-Economic Development Authority (JEDA)

Program Type:

Loan

Eligible Geography:

South Carolina

Summary:

The JEDA Industrial Revenue Bond Program is a tax-exempt bond that allows manufacturing facilities, 501(c)(3) organizations and solid waste disposal facilities access to capital markets to finance their economic development related projects.

The portion of the project financed with tax-exempt bonds is restricted to the core manufacturing component and certain ancillary facilities. These bonds are most efficient for companies with construction projects in excess of $2 million. The upper limit of a bond issue for a manufacturing enterprise is under $10 million. General parameters: Interest rate to borrower generally 70-80% of taxable rate 95% of net bond proceeds must be spent on capital assets Issuance costs may not exceed 2% of net bond proceeds Bond maturity may not be greater than 120% of average expected economic life of asset(s) financed Limited exception for expenses incurred within 60 days prior to inducement date.

For non-profit organizations: There are no project size limitations; There is no state volume cap; and Existing taxable debt can be refinanced.

For small issue manufacturing facilities: $10MM maximum tax-exempt bond issue per project; $20MM capital expenditures limit for three years prior to and three years subsequent to bond issue; $40MM aggregate nationwide limit of outstanding tax-exempt bonds for any borrower; Subject to State Volume Cap Allocation; Acquisition, rehabilitation or construction of manufacturing facilities: Existing structures require substantial rehabilitation of at least 15% of building cost; Acquisition of new equipment: Used equipment may only be financed if contained in an acquired building/facility; and Purchase of land may not exceed 25% of tax-exempt bond.

Solid Waste Disposal Facilities are defined by the Internal Revenue Code rules as facilities used for the collection, storage, treatment, utilization, processing, or final disposal of solid waste. They are: Subject to State Volume Cap Allocation; and Project size limited only by available volume cap allocation. Program cap is $10 million per bond issue.

Eligible Recipients:

For-Profit Business; Non-Profit Organization; Anchor Institution; Higher Education Institution

Eligible Recipients Detail:

Eligible non-profit organizations, including

-Educational facilities, such as K-12 schools, charter schools, and private colleges;
-Health care facilities, such as acute care hospitals, assisted living facilities, fitness & wellness centers, and alcohol & drug rehab facilities;
-and Other organizations, such as foundations, museums, Goodwill industries, and charities.

Eligible solid-waste disposal facilities: Wood Pellet Producers Tire Recycling Facilities Metal Recycling Facilities Traditional Landfills Pollution Control Facilities Waste-to-Energy Facilities Cement Manufacturers.

Eligible Purpose:

Last Mile Infrastructure; Building Infrastructure; Broadband Enabled Devices

Eligible Purpose Detail:

Industrial Revenue Bonds can be used primarily for acquisition of land, construction of a building and acquisition of equipment.