California Industrial Development Financing Advisory Commission
CORE Application Process
The Prospective User (principals and financial officers of manufacturing business) Should Contact:
- CIDFAC to discuss the Industrial Development Bond (IDB) eligibility requirements.
- The local issuance authority to initiate the application process.
- The local issuing authority or CIDFAC to get a recommendation on a financing team such as the underwriter, financial advisor, etc.
- Bond counsel, preferably a law firm specializing in tax-exempt bonds.
- A financial institution willing to issue a letter of credit for the face amount of the bonds or a qualified institutional investor willing to purchase the bonds through a private placement.
Local IDB Issuing Authority
The California Government Code authorizes local agencies, cities, counties and joint powers authorities to approve projects that create jobs and provide public benefits to the local community. The local government approval process must be completed prior to CIDFAC acceptance of the IDB application. CIDFAC’s review and final resolution approval relies on the public benefit and job creation documentation provided by the local issuing authority.
CIDFAC Application and Approval
The local issuing authority submits the IDB application to CIDFAC. CIDFAC staff reviews the application to determine overall public benefits and the financial security of the project. Federal and state revenues do not guarantee IDB bond financings. The bonds issued are purchased by the private sector and the repayment is not an obligation of the state or federal government. CIDFAC approves or denies the project for financing at its monthly Commission meetings in Sacramento.