Empowerment Zone (EZ) Bonds
Designed to assist California’s most distressed communities with growing their economies and providing good-paying jobs.
If you have any questions about the Empowerment Zone program, please contact CIDFAC.
Private, tax-exempt Industrial Development Bonds (IDBs) issued in a federally designated Empowerment Zone have no limit on the dollar amount and are meant to assist California’s most distressed communities by helping manufacturers, retailers and other services finance projects that will provide jobs.
There are four California communities with designated Empower Zones: the cities of Los Angeles, Santa Ana and Fresno, and portions of unincorporated Riverside County.
Application and Approval Process
EZ bond financing must receive California Industrial Development Financing Advisory Commission (CIDFAC) approval. For each project, the issuer must submit on behalf of the borrower a completed application form and supplemental material in a manner prescribed by CIDFAC. All questions set forth in the application must be answered completely and accurately. Each application must be accompanied by the required documentation outlined in the application. Only completed applications bearing original signatures will be accepted. Each application must include:
- A complete signed EZ bond application.
- The borrower’s financial statements for the past three years.
- Certified minutes of Tax Equity and Fiscal Responsibility Act (TEFRA) hearing.
- Local inducement resolution.
- Letter of credit commitment.
- Borrower-completed legal questionnaire.