MISSION
The FDFC is designated as a state-wide, special development financing authority for economic development purposes. Our purpose is to assist new and existing businesses and organizations (for-profit and not-for-profit) with access to capital through financing that promotes business activity, job creation, and an improved standard of living for the citizens of Florida.
DESCRIPTION
The FDFC supports economic development by assisting for-profit and not-for-profit businesses with access to capital for project financing. The primary mechanism for accessing the capital markets is tax-exempt and taxable bonds. Bonds issued to make loans to entities other than state or local governments are known as “conduit bonds”. The two main roles of the FDFC are i) fulfill federal notice and public hearing requirements to issue tax-exempt bonds (TEFRA) and ii) create securities that are sold by the Borrower’s financing team to banks or investors (bondholder). These securities are called private activity bonds (PAB’s).
SERVICES/PROGRAMS
BOND FINANCING
• The FDFC is a special development financing authority. We offer tax-exempt, low interest bond financing to qualifying projects or borrowers. These can include small manufacturers and 501(c)(3) non-profit organizations.
• FDFC has been given authority in Chapter 288, Part X of the Florida Statutes to act as a state-wide conduit issuer for bond financing. Borrowers do not have direct access to the capital markets for bond financing, therefore, FDFC serves as a borrower for the borrower. This means that the responsibility for the repayment of debt falls solely on the borrower.
• The IRS Code outlines certain borrowers or projects that qualify for tax-exempt financing. These non-governmental bonds are known as Private Activity Bonds (“PAB”) or 501 C 3 Bonds. The Division of Bond Finance is given the responsibility for receiving Florida’s annual allotment from the federal government and for managing the process for PAB allocation.
• Property Assessed Clean Energy or “PACE”-A financing option in partnership with the Florida Resiliency and Energy District that allows commercial property owners to make improvements to their property pertaining to energy conservation, energy efficiency and wind-hardening and make the payment on their tax bill. PACE allows a property owner to utilize the equity or value built-up over time from their original ownership date to serve as the main basis for the extension of credit.
