PRESS RELEASE

For Immediate Release Friday, September 25, 2009

Contact: Noel LaBine 763-477-3086

Wright County gets $5,900,000 allotment for Recovery Zone Facility Bonds to finance private industry.

As part of the American Recovery Act, there have been incentives given to encourage development spending. Besides the Build American Bonds, which reimburses 35% of the interest paid on the bonds, other categories of bonds with partial interest reimbursement by the US government have been issued. The Recovery Zone Bonds have been allocated to counties throughout the nation. Many counties got little or no allotment. Wright County has been fortunate to get a $5,900,000 allotment for Recovery Zone Facility Bonds, which are funds to finance private industry. The advantage of these bonds is that there will be a 45% kickback from the IRS to the issuer of the bonds, so the bonds will be a net very low interest amount source of funds. 

The facility bonds have to be used for private industry, so any business that is planning on building a $1 million or more expansion could theoretically use this funding source. An expansion could be less than $1 million. However, because of the cost of bond issuance amounts less than $1 million quickly become non-competitive. Nevertheless, one good feature of this kind of financing is that it is an excellent source of long-term debt, which the credit market has recently been adverse to.

Wright County has sent information out to all cities in Wright County to consider the use of this bond allotment.

Those cities with businesses that may qualify for this allotment should identify those projects ASAP, as the county is accepting use of the funds on a first come, first serve basis.

The Partnership exists to enhance the business climate of Wright County and to help create more jobs in Wright County . The strategies the Partnership uses to achieve its mission include being an information resource and finding technical assistance; aiding business development, providing financing resources, and providing business information and training through seminars and workshops. Also, the Partnership markets Wright County to business site locators, and maintains an excellent website, which includes a listing of commercial and industrial property available in Wright County (see www.wrightpartnership.org ). The Partnership also assists with Workforce Development and has gathered economic statistical information, which is available on its website.