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Reduce your project costs with lower interest rates

Companies trying to maintain a competitive edge often plan to build new facilities, improve or refinance existing facilities, or acquire new equipment. First American Bank can help your business achieve significant savings by financing your project with tax-exempt Industrial Revenue Bonds (IRBs).

How IRBs Work

A governmental authority acts as the issuer of the bonds, so the interest is not subject to federal income taxes. The bank passes this on in the form of a lower interest rate, generating substantial savings for your company.

  • Funds must be used by a manufacturer of tangible goods. The company must add value or alter raw materials.
  • At least 75% of the bond proceeds must be used for expenditures directly related to the manufacturing process. No more than 25% may be used for ancillary facilities such as warehouse or office space.
  • Funds can be used to build a manufacturing plant and acquire necessary land.
  • Funds can be used to acquire an existing manufacturing plant as long as 15% or more is used to rehab the structure.
  • Funds can be used to acquire new equipment used in the manufacturing process.
  • Your company's capital expenditures cannot be greater than $20 million (except with a lease) in the municipality where the project is located. This $20 million is the amount spent over a defined period of three years before financing and three years after.
First American Advantages
  • Competitive Rates: Whether you are interested in a variable rate loan or a fixed-rate loan, you can expect interest savings of 15% to 25%, or more compared to conventional financing.
  • Direct Placement: First American purchases the bonds directly. This structure reduces costs, saves time and provides flexibility. Once closed, the bonds operate like a conventional loan, but with a lower interest rate.
  • Accurate Needs Assessment: Even if you qualify, an IRB may not be your best option. With our experience, we can assess your company's specific needs and see if you might do better with a commercial mortgage, an SBA 504 loan, or something else.
  • Smooth Process: Given all the parties involved, an IRB financing can take 45 days or longer to complete. First American will assemble a team of specialists, manage the costs and make the process run as efficiently as possible.
First American Bank is a full-service bank with locations in Illinois, Wisconsin and Florida.