County of Loudoun News Release
October 30, 2009
$1.479 Million Allocation of Recovery Zone Facility Bonds is Available Proposals Accepted through November 13, 2009 Interim County Administrator Linda Neri announces $1.479 million in tax-exempt bond financing opportunities available under the Recovery Zone Facility Bonds program offered through the U.S. Treasury. "This bond program will give private businesses access to financing to pursue modest expansion projects in Loudoun County at tax-exempt interest rates which can be 2% or more below the taxable rates usually available to private businesses," said Neri. Recovery Zone Facility Bonds are a type of traditional, tax-exempt private activity bonds that may be used by private businesses in designated recovery zones to finance new capital improvements, such as the purchase of equipment, real property (except land), or other depreciable assets. A Recovery Zone will be designated by the Board of Supervisors at a future date. The Recovery Zone Bond programs will be administered according to U.S. Treasury and Internal Revenue Service guidelines. These guidelines can be found at http://www.irs.gov/irb/2009-26_IRB/ar06.html. Private businesses interested in utilizing Loudoun County’s Recovery Zone Facility Bond allocation must submit a proposal by 5:00pm, November 13, 2009. The bonds will be issued through the Loudoun County Industrial Development Authority (IDA), and debt service on the bonds will be the responsibility of the designated private business. The schedule of debt issuance will be determined with the IDA, but the debt must be issued no later than March 15, 2010, and the debt will not constitute debt or a moral obligation of the County. Information necessary for consideration of a proposal includes: project description, to include specific uses of funds to be issued through the IDA; financial information detailing creditworthiness to qualify for bonds through the IDA (including ability to begin debt service payments within six months of debt issuance, no later than September 15, 2010); and justification that such a proposal would not otherwise qualify for tax-exempt bond funding and that such a proposal is in an area of “significant poverty, unemployment, rate of home foreclosures, or general distress.” More information can be found at http://stimulus.virginia.gov or by contacting Suzanne Lane, Loudoun County Debt Manager, at 703-737-8832 or suzanne.lane@loudoun.gov. Proposals should be submitted via email to Danny Davis in the Office of the County Administrator at danny.davis@loudoun.gov. # # # Contacts: Suzanne Lane, Debt Manager 703-737-8832; Danny Davis, County Administration 571-258-3334 |