How Industrial Revenue Bonds Work

Industrial revenue bonds irbs are used in kansas to finance acquisition and construction of a broad variety of industrial commercial and industrial properties under k s a.

How industrial revenue bonds work. Irbs in kansas irbs are issued by cities counties and the kansas development finance authority. Municipal bonds generally can be classified into two camps general obligation bonds and revenue bonds. I trying for tax abatements as well. Industrial revenue bonds irbs are among the most popular and cost effective methods of financing up to 100 percent of a new or growing business land buildings and equipment.

12 1740 et seq on behalf of private businesses or non profit agencies. The bond issue is sponsored by a government entity but the proceeds are directed to a private for profit business. Industrial revenue bonds irbs are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment. I m looking into building a hotel in a city that desparately needs one.

General obligation or go bonds are backed by the general revenue of the issuing municipality while revenue bonds are supported by a specific revenue source such as income from a toll road hospital or higher education system. Corporations can borrow money by issuing bonds on their own in the commercial marketplace in which case they must offer investors the prevailing rate of interest. Irb s require a governmental entityto act as the issuer of the bonds who will hold an. Industrial revenue bonds irb are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment.

Municipalities use revenue bonds in order to fund the construction expansion or renovation of speculative projects that generate user fees such as airports industrial parks sports stadiums publicly owned power plants hospitals and toll roads. An industrial revenue bond irb also formerly known as an industrial development bond idb is a unique type of revenue bond organized by a state or local government.