Bond Financing
R.I. Industrial Facilities Corporation (RIIFC) offers both tax exempt bonds and taxable bonds to businesses.

{{RELATEDLINKS}} Tax Exempt Bonds
RIIFC issues tax-exempt revenue bonds for companies exploring various manufacturing projects with a $20,000,000 maximum limit per project. The bond can cover up to 100% 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
RIIFC offers taxable bonds for businesses that want to branch out into a commercial enterprise, including building tourist-travel facilities. 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.

The Rhode Island Industrial-Recreational Building Authority, bond/mortgage insurance:
Mortgage insurance is offered through the Rhode Island Industrial Recreational Building Authority (IRBA). The maximum amount a business can borrow through this program is $5,000,000. The loan covers up to 90% on real estate, 80% of machinery and equipment, and 75% 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.

The Small Business Loan Fund:
For smaller businesses looking for a direct, fully secured loan, the Small Business Loan Fund (SBLF) provides up to $250,000 for working capital to existing manufacturing, processing and selected services. Additionally, manufacturers seeking financing to be used for the acquisition of land, buildings, and equipment may qualify for loans in excess of $250,000. Interest rates are fixed. The repayment terms are flexible, with up to 5 years for working capital and up to 10 years for hard asset financing. For each $50,000 in funds lent, there should be the creation of a minimum of one job.

Renewable Energy Fund
The RIEDC Renewable Energy Fund (REF) is dedicated to increasing the role of renewable energy with business development and energy supply in Rhode Island's electric grid. The REF provides grants, loans and other financing options to renewable energy projects with the potential to make electricity in a cleaner, more sustainable manner, while stimulating job growth in the green technology and energy sectors of Rhode Island's economy. Using funds from the 'system benefit charge' on electric bills and Alternative Compliance Payments, RIEDC will fund renewable energy projects in in small-scale solar, feasibility studies and commercial development. Commercial development consists of direct project installations and early-stage commercialization of new technologies and business models.

Rhode Island Contact: Finance Division
Rhode Island Commerce Corporation
315 Iron Horse Way, Ste. 101
Providence, RI 02908
(401) 278-9100
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings. This information was last updated October 2015.