CASSOPOLIS – The Michigan Department of Treasury and the Michigan Economic Development Corp. (MEDC) have announced two new bond programs through the American Recovery and Reinvestment Act.

These programs are designed to provide low-cost financing for both public and private projects.

Each county in Michigan has been allocated both Recovery Zone Economic Development Bonds (RZEDBs) and Recovery Zone Facility Bonds (RZFBs).

These funds must be obligated by Dec. 31, 2010, or they will revert back to the state for reallocation to other counties.

Cass County has been allocated $3,952,000 for RZEDBs and $5,928,000 for RZFBs.
Recovery Zone Economic Development Bonds can be used to finance projects that have an economic development purpose and are located in a Recovery Zone.

Recovery Zones include but are not limited to Renaissance Zones and TIF Districts. Bond proceeds can be used for infrastructure and public building projects as well as job training and educational programs. These bonds cannot be used for refinancing.

Recovery Zone Facility Bonds are tax-exempt private activity bonds that can be used to finance projects such as commercial buildings, hotels or other industrial structures.

Proceeds can be used to finance depreciable property in a Recovery Zone.

The Michigan Strategic Fund or a local economic development corporation can issue these bonds.

MEDC can provide more detailed information on eligibility and the application process for these bonds.

Contact Diane Cramer at (517) 373-2778 or at cranmerd@michigan.org.