For Immediate Release
May 30, 2006
For More Information: Dodd Snodgrass, Economic Development Specialist at 360-676-2500 or .
[Bellingham, Wash.] With interest rates increasing, conventional business financing has become more expensive. Industrial Revenue (IRBs), issued through the Port of Bellingham’s Industrial Development Corporation (IDC) are a finance tool that can save costs for qualifying companies. IRBs are tax-exempt financings that provide low-cost debt to manufacturing and process facilities.
On May 17, the federal Tax Increase Prevention and Reconciliation Act increased the capital expenditure limit on small issue IRBs from $10 million to $20 million effective January 1, 2007. This means the tax-exempt borrowing from an IRB can be as much as $10 million, while the total project cost can reach $20 million, allowing for more significant private investment.
The Port of Bellingham’s IDC acts as a conduit for this tax exempt financing. The Port or local taxpayers do not provide the actual project funding; borrowers secure the financed funds through a lending institution. This financing mechanism offers manufacturing and processing companies the advantage of below market interest rates for constructing new buildings, upgrading existing facilities and purchasing new machinery or equipment purchased land. The Port's IDC can issue IRBs anywhere in Whatcom County.
Since 1984, the Port has issued $112 million in Industrial Revenue Bonds for 14 projects. These projects have included: Allsop Inc., Sauder Moldings, Yamato Engines, and FPE Renewables (Van Der Haak Dairy manure digester).
More information on the Port's IDC is available at www.portofbellingham.com
