State of Texas Financing Opportunities
Leverage Fund
Program Objective
Introduced in 1992, the Texas
Leverage Fund (TLF) provides an additional source of financing
to communities that have adopted an economic development sales tax. Communities
may leverage future sales tax revenues to support job retention or creation.
Terms
Available for interim, long-term or gap
financing, TLF loans provide flexible financing terms to match the unique
needs of communities, with maturities of up to 15 years available. Generally,
EDCs are eligible to borrow four to five times annual sales tax revenues,
up to $5 million. TLF loans are low-cost, providing capital to communities
at floating Prime Rate, as published in the Wall Street Journal.
Future sales tax revenues serve as collateral
for loan repayment with required debt service coverage ratios specified
in the Texas Leverage Fund Program Guidelines. Pledged tax collections
not needed for actual debt service are available for other projects.
Use of Proceeds
Loan proceeds must be used to pay eligible
"costs" of "projects" as defined by the Development Corporation Act of
1979 (the Act), as amended. Under Section 4A of the Act, examples of eligible
costs include land, buildings, machinery and equipment for manufacturing
and industrial operations. Under Section 4B of the Act, examples of eligible
costs include sports, athletic, entertainment and public park purposes
and events.
Resources
* Texas Comptroller
Tax Publications (96-302) – Economic Development Sales Tax Development
Corporation Act
* Texas
Leverage Fund Loan Application [738KB MSWord]
* Texas
Leverage Fund Program Guidelines (PDF)
Contact Information
For additional information on the Texas
Leverage Fund Program, contact (512) 936-0100.
Also:
Industry
Development Loan Program
Program Objective
The Texas Industry Development (TID) Loan
Program provides capital to Texas communities at favorable market rates.
The main objective of TID is to support projects that will stimulate the
creation of jobs and corporate expansion and relocation. TID loans can
be used for a variety of purposes, including the purchase of land, buildings,
construction, machinery and equipment. TID financing is available for loans
above $5,000,000. TID loans are generally requested by a community's economic
development corporation, or EDC.
Terms
TID Program loans are low cost, long term
financing opportunities to cover costs of economic development projects.
The term of the loan cannot extend beyond the useful life of the assets,
or bond maturity in 2025.
Source of Funds
The TID program operates within a non-profit
entity incorporated under the Development Corporation Act of 1979 (Vernon's
Texas Civil Statutes Article 5190.6), Texas Small Business Industrial Development
Corporation (TSBIDC). The 67th Legislature in 1981 authorized TSBIDC to
issue bonds for economic development projects. The Office of the Governor
Division of Economic Development and Tourism administers the TID program.
TID loan obligations do not constitute any liability on the part of the
State.
Starting in 1983, TSBIDC issued special
limited revenue obligations supporting job creation and capital investment
for businesses and communities in Texas. Supported by a bond issuance on
July 15, 1986, TID funds are directed to communities for economic development.
Debt service is provided by project revenues.
TID
Loan Program Application [683KB MSWord]
Contact Information
For additional information on the Texas
Industry Development Loan Program, contact (512) 936-0100.
 Grants
for ANY State! You have seen this crazy guy on TV. Now
you can get his grant book via an ebook which you can download instantly.
I think it's about $24. I do have a copy and it's "loaded" with grant info.
Mathew Lesko Grants
here |
|
