EDCPC offers affordable financing for manufacturing and processing projects
Low interest rates for capital projects may be a thing of the past. With a Federal Reserve interest rate hikes in June and July with potentially more on the horizon, the cost of financing is a huge consideration for companies looking to build, expand, or purchase new machinery or equipment. Pierce County manufacturing and processing companies have an affordable financing option to fund those projects.
The Economic Development Corporation of Pierce County (EDCPC), staffed by the Economic Development Board for Tacoma-Pierce County, is a public corporation that issues tax-free Industrial Development Revenue Bonds (IDRBs) for projects throughout the county. The federal IDRB program offers below-market financing for qualified projects. No public money backs the bonds, and borrowers are fully liable for repayment and must obtain private backing.
Up to $10 million in bonds may be issued for projects whose total capital investment is under $20 million. Eligible projects include:
- Acquisition, construction and improvement of land, buildings, docks, wharves, roads, parking, utilities and landscaping.
- New machinery and equipment.
- Architectural designs, engineering work and feasibility studies.
- Consulting, accounting and legal fees.
- Financing arrangements and interest accrued during construction.
Keeping and growing jobs here
The EDCPC evaluates project proposals, provides information and assistance to businesses as they work through the bond process, and advocates for bond approval before several public bodies including EDCPC Board, local permitting jurisdiction’s council, Pierce County Council and the Washington State Department of Commerce. Based on the EDCPC’s recommendations, approval for the issue of multiple IDRBs has helped companies stay competitive while sustaining and growing jobs in Pierce County.
One example is Puyallup-based SeaTac Packaging, a manufacturer of bags for transporting food, animal feed, seeds, cement mix and more. The company used a $10 million IDRB to finance a portion of its 103,000-square-foot, state-of-the-art manufacturing facility that opened in the Frederickson Industrial Area in 2019.
If you’d like more information or your business is interested in IDRB funding, contact Tamsin Bell, EDB Vice President of Business Development, at [email protected] or 253-284-5889.