$23 Million in Recovery Zone Facility Bonds Geared to Help Local Economy
CAPE CORAL, Fla., Jan. 7 /PRNewswire-USNewswire/ -- Businesses looking to relocate or expand in Cape Coral now have a new low interest financing option to consider in the form of tax-exempt Economic Recovery Zone Facility Bonds (RZFB). City Council formally designated the entire city as an Economic Recovery Zone in order to be allowed to tap into the monies, which are authorized by the American Recovery and Reinvestment Act. Credit-worthy businesses planning capital improvements to an existing facility or building a new facility in Cape Coral are encouraged to apply.
"While this is not free money, businesses stand to save a tremendous amount of money over the life of a loan," said Business Recruitment Specialist Audie Lewis. "These bonds are approximately two points less than taxable bonds. Additionally, the term of bond financing is typically 20 to 30 years versus 10 to 20 years for a commercial note. If a business approaches us with a concept that will improve our economy, we're ready to listen and to help them through the application process."
Cape Coral has been allocated a maximum of $23,069,000 for RZFBs. Funding requests must be for $1 million or more to participate. Bond applicants must have the backing of a bank or financial institution.
Most any type of business, including commercial and retail, may qualify for the program. Excluded projects include residential rental, golf courses, country clubs, massage parlors, hot tub and suntan facilities, gambling businesses or any store whose principal business is the sale of alcoholic beverages for off-premise consumption.
Interested companies need only submit a letter of interest to the City's Economic Development Office to get started. At that point, the City will work directly with the business to determine if the bond program will work for their proposed business venture.
An application fee of $1,500 for bond applications up to $5,000,000 and $2,500 for applications over $5,000,000 is required at the time of submission.
The City of Cape Coral is also eligible to use approximately $15 million in Recovery Zone Economic Development Bonds, a second type of bond program. These bonds could be used by the City and public/private partnerships for capital projects as well as for job training and education.
Cape Coral must issue the bonds by January 1, 2011.
Cape Coral Economic Development
P.O. Box 150027
Cape Coral, FL 33915-0027
Phone: 239 574-0444
Toll-free: 866 573-3089
SOURCE City of Cape Coral