Projects which are eligible under the Internal Revenue Code of 1986 can qualify for tax-exempt financing under AIDEA's Conduit Revenue Bond Program. Under this program, AIDEA acts only as a conduit for the issuance of either taxable or tax-exempt bonds. Neither the assets nor credit of AIDEA is at risk in this program; the creditworthiness of the project and credit enhancements offered by the applicant are essential to the underwriting and placement of bonds.
A business enterprise may request financing assistance under the Conduit Revenue Bond Program by submitting a completed conduit revenue bond application (available below) and non-refundable $500 application fee to AIDEA. If AIDEA determines that the proposed project and applicant are eligible to participate in the Conduit Revenue Bond Program, AIDEA will continue to process the application, and if it is determined that the project will qualify for tax-exempt financing, an eligibility resolution must be adopted by AIDEA's board of directors. In addition to third-party costs, the applicant will pay a financing fee to AIDEA. If the bonds are subject to the volume cap provisions of 26 U.S.C. sec. 147, the issuance fee is equal to the following:
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one percent (1%) of the first $1 million of the principal amount of the bonds issued:
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one-half percent (.5%) of the next $4 million of the principal amount of the bonds issued:
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one-quarter percent (.25%) of the next $10 million of the principal amount of the bonds issued; and
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one-tenth percent (.10%) of the principal amount of the bonds issued in excess of $15 million.
If the bonds are not subject to the volume cap provision of 26 U.S.C. sec. 147, the issuance fee is equal to three-quarters of the amount described above.
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