From: Pam Girtman, Clackamas County Business and Community Services, 503-742-4353

2-4-10

A new source of lower-cost capital financing is available to private local businesses for expansion and job creation, thanks to federal Recovery Zone Facilities Bonds, created under the American Recovery and Reinvestment Act.

The county has more than $13 million in bonds for private sector use. The deadline for submitting applications is Wednesday, Feb. 24.

Clackamas County Business and Economic Development staff members are available to answer questions about the program, which will provide businesses with low-cost, tax-exempt financing that is usually available only to state and local governments.

"We want to emphasize that government doesn't create jobs but we do enable private business to thrive," said Clackamas County Commissioner Ann Lininger. "This program provides an excellent financing tool that can help the private sector with expansion of their business as well as job creation there."

Businesses that need financing for construction, renovation, reconstruction projects or to buy property should explore using these tax-exempt bonds. This financing option is best suited for capital projects of more than $3 million with a life of seven years or longer. Recovery Zone Facilities Bonds (RZFB) financing cannot be used for working capital, for refinancing purposes, for residential rental projects, land purchases or for other categorically excluded uses.

RZFB's were created under the American Recovery and Reinvestment Act (ARRA). 

The bonds must be issued by Dec. 31. Projects may be subject to Oregon prevailing wage laws. If approved for RZFB financing, businesses would initiate and be fully responsible for the bonding process. RZFB's are paid solely by the applicant. Applicants should be able to borrow their requested amount of bonds from a commercial bank or other lender.