An Industrial Revenue Bond (IRB) is a form of municipal bonding that is designated for use by private manufacturers. Projects within an Enterprise Zone are given preference for IRBs. By providing a reduced financing rate, an IRB gives small manufacturers access to capital (both locally and in national markets) that they ordinarily might not have.
IRB’s can be issued for amounts between $1.5M and $10M, and the interest rate is generally 2.5-3% below prime. These loans can be at fixed or variable rates and usually have terms of 20 years. Unlike many other state and locally-run programs, IRBs can fund 100% of costs. These costs can include purchase of land, buildings and new machinery. Applicants must secure the legal opinion of certified bond counsel.
In 2007, the City of Peoria has been allocated about $9.5M to use for industrial projects. (If this amount is not used for industrial projects, it is allocated for the Assist homebuyers program.) Additionally, the state’s Illinois Finance Authority has authority over approximately $80M in separate funds. For more information on this tremendous benefit, please click here or call the Department of Economic Development at (309) 494-8640.