Grand Traverse County Tax-Exempt Revenue Bond Program
Manufacturing businesses, non-profit 501(c)(3) organizations and other qualified projects in Grand Traverse County, Michigan may be eligible for loans for capital expenditures.
Grand Traverse County’s Tax-Exempt Revenue Bond Program provides manufacturing businesses, nonprofit 501(c)(3) organizations and other qualified projects with loans for capital expenditures. Traverse Connect is a partner of the Grand Traverse County Economic Development Corporation to facilitate applications by nonprofit and manufacturing businesses.
Loans may be approximately $2-10 million for manufacturers. There is no limit for nonprofit organizations.
What is tax-exempt revenue bond financing?
Tax-exempt revenue bonds are a capital funding tool for manufacturers, non-profits and other qualified projects. The involvement of the Grand Traverse County EDC authorizes the lender to issue the bond with a tax-exempt status. For the borrower, this results in a lower than market interest rate. The bond purchaser (i.e., the lender) will set the terms and interest rate of the bond, as well as perform all underwriting. This resource can provide substantial savings in financing costs over the life of the project.
Eligible Projects & Loan Details
- Land acquisition
- Building renovation
- Land improvements
- Machinery and equipment
- Building acquisition
- Building construction
- Soft costs related to capital projects
- Project Area Phase
- Borrower works with Traverse Connect team to research, develop, apply for bond, and create resolution.
- Economic Development Corporation adopts resolution of Inducement and Intent to Issue Bonds. This resolution does the following:
- Establishes public purpose by stating intent to issue bonds before construction of project is commenced
- Determines “project area” i.e. site of project
- Project Plan Phase
- County Board calls for public hearing on project plan.
- County Clerk give public notice of hearing – 20 day notice is required prior to holding public hearing.
- County Board holds public hearing and following public hearing acts on project plan.
- Document & Bond Phase
- The County Board of Commissioners adopts resolution authorizing bonds and approving legal documents.
- Bond closing is completed and funds are distributed to borrower.