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Industrial Revenue Bond Program
Cook County offers loans to small and mid-size manufacturing companies at attractive interest rates of approximately 5 percent, depending on current market interest rates. Loan amounts can range from $1 million to $6 million.
Loans can be used for costs of setting up or expanding core manufacturing facilities that have only small ancillary warehouse or office components. Eligible uses include:|
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- purchase of land and facilities
- construction materials and labor
- equipment
- working capital
- professional fees, including consultant, architect and attorney fees
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Loans funds come from an industrial revenue bond issued through Cook County. The bond has federal tax-exempt status, allowing the bond to be sold to investors at interest rates below the prime rate. The company must pay bond counsel fees.
The industrial company is liable for bond repayment, backed by a letter of credit from a lending institution. Cook County is not liable in any way to repay the bond.
Processing time by Cook County takes a minimum of two or three months from the receipt of the application. Further action by the financial institution and bond counsel on behalf of the company is also needed to complete the sale of the bond.
Cook County requires financial information from the company similar to standard industrial loans, including audited financial statements for the past three years. All financial background information is kept confidential by Cook County. The terms of the bond sale are public information.
For information contact the Cook County Department of Planning, Office of Economic Development at (312) 603-1070, 69 W. Washington, Suite 2900, Chicago, Illinois, 60602.
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