Low interest, tax-free loans.
If your business is building or expanding manufacturing facilities or processing facilities, Industrial Revenue Bonds may be a good option for you. Administered by the Washington Economic Development Finance Authority (WEDFA), these bonds are low interest and tax-free.
Here’s how these bonds work. WEDFA borrows the money, either from a bank or a bond purchaser. They lend the proceeds to your company in return for an agreement that you will repay WEDFA an amount equal to the debt service. WEDFA then assigns its rights to the loan repayment to the bank or bond purchaser.
One of the big benefits of this type of financing is that the bank or bond purchaser doesn’t have to pay any income tax on the interest they earn. As such, they can accept a lower interest rate, which in turn is passed on to you, lowering the cost of borrowing.
WEDFA can also issue taxable bonds, making it possible to fund multi-purpose facilities in a single package.
For more information on this and other types of small business financing, visit the WEDFA website.
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