Rhode Island Industrial - Recreational Building Authority Bond / Mortgage Insurance

RIEDC offers mortgage insurance through the Rhode Island Industrial - Recreational Building Authority (IRBA). The maximum amount a business can borrow through this program is $5 million. The loan covers up to 90 percent on real estate, 80 percent of machinery and equipment, and 75 percent of tourist-travel recreation projects. Funds can be used for new building acquisitions, additions and rehabilitation of existing buildings and for new or used machinery and equipment. This program offers borrowers debt insurance on tax-free bonds, taxable bonds and conventional mortgages. Application Process

Program Rhode Island Industrial/Recreational Building Authority Bond/Mortgage Insurance
Eligible Applicants Manufacturing, processing, office, wholesale, retail and travel-tourist facilities
Dollar Limit Per Project Maximum: $5 million
Minimum: $100,000
Maximum Limit, Percent of project cost Real Estate: 90%
Machinery & Equipment: 80%
Tourist-Travel: 75%
Approved Use of Funds New building acquisition or, additions/rehabilitation of existing buildings. New or used machinery & equipment.
Interest Rates Bond issues – fixed or floating
Mortgages – floating
Term of Repayment Normal terms for real estate: Maximum 25 years
Machinery & Equipment: Maximum 20 years
Form of Financing Debt insurance on tax-free bonds, taxable bonds and conventional mortgages. Insurance premiums based on average annual outstanding principal balance: 1-3%