JEDA Tax-Exempt Bond Program

JEDA's Tax-Exempt Bond Program is a conduit that allows manufacturing facilities, 501(c)(3) organizations and solid waste disposal facilities access to capital markets to finance (at sub-Prime interest rates) their economic development related projects.

Qualifying Enterprises

Manufacturing Enterprises. A large percentage of the applicants to JEDA are industries wanting to establish or expand manufacturing facilities. Industrial Revenue Bonds can be used primarily for acquisition of land, construction of a building and acquisition of equipment. 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.

Healthcare Facilities

In addition to acute care hospitals, JEDA can issue bonds for other qualifying healthcare providers such as nursing homes, assisted living facilities, facilities providing fitness and wellness programs such as YMCA's, projects for alcohol and drug abuse commissions and residential treatment programs for youth. These projects are owned by 501(c)(3) organizations.

Educational Facilities

JEDA issues bonds for educational projects owned by 501(c)(3) educational organizations for primary and secondary education.

Solid Waste Disposal Facilities

Companies that dispose of solid waste (which is generally defined as materials that have no value) are eligible to apply to JEDA for access to JEDA bonds. Cement manufacturers, automobile paint shops, as well as traditional landfills can access these types of bonds.