Looking for a low-cost construction financing option? The American Recovery and Reinvestment Act of 2009 created a new category of bonds – Recovery Zone Bonds (RZB). These bonds are intended to stimulate economic recovery in designated “recovery zones”. There are two categories of RZBs – Recovery Economic Development Bonds ($10 billion allocated) and Recovery Zone Facility Bonds ($15 billion allocated).
Recovery Zone Economic Development Bonds – These are governmental bonds to be used for governmental purposes that will allow the county/large municipality to borrow on a lower cost than traditional tax-exempt financing.
Recovery Zone Facility Bonds – These are private activity bonds that permit counties/large municipalities to provide tax-exempt financing for private projects which historically would not qualify (e.g. large manufacturing plants, distribution centers, hotels, research parks, etc).
The government will allocate each category of RZBs to states based on each state’s decrease in employment compared to the national decrease in employment. The state then allocates the bonds to counties and large municipalities based on their decrease in employment compared to the state’s decrease in employment. We will provide an update once these bonds have been allocated.
To learn more about how Recovery Zone Bonds may benefit your business, click here to view a more detailed summary from Benesch Attorneys at Law.
Looking for a Cleveland or Akron accounting firm that provide services to the construction industry? Contact the Real Estate and Construction Group at Skoda at 440-449-6800.