R.I. Industrial Facilities Corporation

Tax Exempt Bonds: RIIFC issues tax-exempt revenue bonds for companies exploring various manufacturing projects with a $20 million maximum limit per project. The bond can cover up to 100 percent of the cost for a manufacturing project including land, new machinery and equipment, building costs and certain eligible "soft" costs. Interest rates are tax exempt and are determined by the market. Building materials purchased for projects may be eligible for exemption from Rhode Island sales tax. Taxable Bonds: For businesses that want to branch out into a commercial enterprise, including building tourist-travel facilities, RIIFC offers taxable bonds. These bonds are almost identical to the tax-exempt bonds, but they are taxable for financing fixed commercial assets such as land, building, machinery and equipment, and related "soft" costs. The limit per project is usually established by the bond purchaser or credit enhancer. Application Process

Program Rhode Island Industrial Facilities Corporation (RIIFC) TAX EXEMPT Bonds Rhode Island Industrial Facilities Corporation (RIIFC) TAXABLE Bonds
Eligible Applicants Manufacturing Projects Manufacturing and selected commercial facilities, including travel-tourist facilities
Dollar Limit Per Project Maximum limit prescribed by IRS. Normally to $20 million Maximum limit established by bond purchaser or credit enhancer
Maximum Limit, Percent of project cost Up to 100% Up to 100%
Approved Use of Funds

To finance fixed assets for a manufacturing project

  • Land
  • Building
  • New machinery & equipment
  • Certain eligible "soft" costs

To finance fixed assets

  • Land
  • Building
  • Machinery & equipment
  • Related "soft" costs
Interest Rates Tax exempt, floating or fixed rate determined by market Taxable rate, normally floating, dependent on lender
Term of Repayment

Dependent on bond purchaser, Normal Terms:

  • 25 years for real estate
  • 20 years machinery & equipment

Established by lender. Normal Terms:

  • 25 years on real estate
  • 20 years machinery & equipment
Form of Financing RIIFC issues tax-exempt revenue bonds without guarantee or insurance for applicant. Fee: 1/8 of 1% annually on outstanding principal balance. Building materials purchased for projects can be eligible for exemption from RI sales tax. RIIFC issues taxable revenue bonds without guarantee or insurance for applicant. Fee: 1/8 of 1% annually on outstanding principal balance. Building materials purchased for projects can be eligible for exemption from RI sales tax.