Exciting Energy Developments for IFA!

Public Act 96-0103 (formerly Senate Bill 1906) passed both the House and the Senate and was signed by the Governor on July 27, 2009. It clarifies and enhances the IFA and Governor's authority to approve up to an additional $3 Billion in moral obligation bonding authority for renewable energy projects including wind, solar, clean coal, conventional and advanced biofuels, battery, transmission and scrubber technologies. We believe this financial support is unique among states in our country.

MORE NEWS...The IFA is one of eight states included in a survey to assist in the development of criteria for the designated lender program under U.S. Department of Energy's (USDOE) Loan Guarantee program, often referred to as 1705, which has up to $100 Billion in additional credit enhanced bonding authority for renewable energy projects. In our many discussions with USDOE they have noted that one of the strongest advantages of Illinois' approach is the breadth and depth of the experience of the Illinois Energy Team.

Local Governments and School Districts will Benefit from IFA's Local Government Bond Program – Now Streamlined and Lower Cost!

IFA's Local Government Bond Financing Program is now easier to access, and at a lower cost! This is great news for local governments and school districts needing money for capital improvements or to remedy cash flow needs. We've streamlined the process... a transaction can now be approved at just one meeting, making it easier for borrowers to market their bonds through competitive or negotiated sale.* We've also substantially reduced legal fees – creating a range of savings to the borrower of a minimum of $1,750 for smaller issues up to $4,250 for bond issues of more than $25,000,000.

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New Federal Stimulus Bill Expands Bank Qualified Bonds for 501(c)(3)s and Local Governments

The recently signed Federal Stimulus Bill increases the cap on bonds that can be designated as "Qualified Tax-Exempt Obligations" or "QTEO" to $30 million from $10 million. This expansion will allow local governments and 501(c)(3) organizations to finance larger projects using "QTEO" Bonds through December 31, 2010.

The new law also applies the limit separately to each borrower - that is, to each 501(c)(3) organization and to each governmental entity. Under prior law, bonds issued by a governmental body for its own government purposes (like road, water, and sewer projects) and for various 501(c)(3) organizations (like hospitals) were aggregated each year and limited to $10 million.

Click here to contact an IFA Funding Manager.

Federal Home Loan Bank Letter of Credit Provision – A Positive for Access to Capital

With the recent passage of the Housing Relief Bill, a new provision will enable member banks of the Federal Home Loan Bank system to obtain Letters of Credit to support tax-exempt bond issues for manufacturing companies, various 501(c)(3) not-for-profit corporations, and essential purpose local government and school district projects. As a result of this provision, local, community-based member banks of the FHLB system will have an additional resource for obtaining highly rated (i.e., either Double-A or Triple-A long-term from S&P) credit enhancement to support tax-exempt bond issues for these borrowers. This provision will improve access to tax-exempt bond financing, particularly for non-rated borrowers. The Housing Bill provides a two-year test period for the Federal Home Loan Banks to provide these Letters of Credit and is scheduled to sunset as of December 31, 2010.

IFA has now closed two Federal Home Loan Bank Letter of Credit secured transactions: IFA's first was in February for The Everest Academy to construct a new school in Lemont. The Bonds are secured by (1) a Direct Pay Letter of Credit from First Midwest Bank and (2) further enhanced by a Confirming Letter of Credit from the Federal Home Loan Bank of Chicago.

IFA's second Federal Home Loan Bank Letter of Credit financing involved a request from the Sunshine Through Golf Foundation in Lemont to replace their existing credit enhancement with (1) a Direct Pay Letter of Credit from First American Bank and (2) further enhanced by a Confirming Letter of Credit from the Federal Home Loan Bank of Chicago. The Sunshine Through Golf Foundation provides golf instruction to economically disadvantaged youths and the developmentally disabled who live in the Chicago District Golf Association's service area.

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Exciting News for Illinois Beginning Farmers!

Governor Quinn signed SB 260 (Frerichs/Black) into law (Public Act 96-0531), increasing the ceiling for Illinois Beginning Farmer Bonds (Aggie Bonds) from $250,000 to $469,200 with an annual increase linked to the inflation rate. For decades, the ceiling for federally tax-exempt Beginning Farmer Bonds ("Aggie Bonds") remained fixed at $250,000. Obviously, the price of farmland has increased significantly in the meantime, thus eroding the effectiveness of this tool for retaining family farms in Illinois. The Illinois Finance Authority, working in close partnership with the National Council of State Ag Finance Programs ("NCOSAFP") and other ag-related organizations, lobbied the US Congress to increase the ceiling to more accurately reflect current values for agricultural land. IFA's own Eric Reed, Agricultural Funding Manager, was a key player in this successful effort to change federal law in 2008. Of course, Illinois law also had to be changed to reflect the new, higher federal ceiling. Working closely with Senate Sponsor Mike Frerichs and House Sponsor Bill Black as well as the Illinois Farm Bureau, the IFA supported SB 260, which passed both chambers of the Illinois General Assembly in the Spring 2009 Session nearly unanimously. Governor Pat Quinn signed SB 260 into law on August 14, 2009, with an immediate effective date. The law increases the value of Illinois Aggie Bonds and will be used as a tool to strengthen the Illinois rural economy, helping to retain family farms in Illinois.

Contact Eric Reed to learn more about IFA's Beginning Farmer Bond Program.

Click here to learn more about IFA's Beginning Farmer Bond Program.

Agriculture Financings in Illinois

IFA Funding Managers work with farmers and agri-businesses throughout the state. Since July 2008, we have funded 61 projects totaling $13.5 million. These projects include Beginning Farmer Bonds, Participation Loans, and Guarantees.

Click here to see a map of approved projects and the counties where they are located.

Contact Eric Reed at 618-244-2424 or for more information regarding IFA's financing programs for Agriculture.

Another Change with IFA's Beginning Farmer Bond Program...

The 2007 Census has been released. Click here to see the new requirements for allowable farm sizes for Beginning Farmer Bonds.

A bond issuance in the amount of $239.4 million is being used by The Carle Foundation to refinance a taxable loan and also to expand and modernize its current hospital facility. The modernization project includes construction of a nine-story, 348,400 gross sq.-ft. bed tower with all private rooms and modernizing of existing space. The hospital serves east-central Illinois and west-central Indiana. Carle is the primary teaching hospital of the University of Illinois at Urbana-Champaign School of Medicine. They operate a variety of health care facilities and programs. Through this project, 2,509 jobs are being retained. The community will benefit from an additional 470 construction jobs.

Central DuPage Health, a general acute care hospital located on a 44-acre site in Winfield, is using $90 million in tax-exempt bond proceeds issued through IFA to construct a bed pavilion, diagnostic imaging facility, outpatient cancer center, and parking garage. These additions are necessary for Central DuPage to continue to function as a top medical institution, enabling improvement both in the delivery of care and inpatient, family, physician and staff satisfaction. CDH attracts patients from a 50 mile radius. Winfield is located approximately 30 miles west of Chicago. With growth expected in nearby communities and with a 19% projected growth in the age 65 plus population in the upcoming 5 years, CDH will be better positioned to attract new clients. CDH currently employs 2,428 and is planning for 33 new jobs with these additions. Additionally, 400 construction jobs are projected.

Anderson Shumaker is located within the City of Chicago Empowerment Zone #1, and is expanding its manufacturing operation using proceeds of a $10 million Industrial Revenue Bond issue. Established in 1902, Anderson Shumaker produces iron and steel forgings used in construction, power generation, tool & die, and aerospace industries. Volume cap is being allocated by IFA. A second shift will be added, resulting in 18 new jobs. Construction will provide 60 temporary construction jobs.

Overton Gear will no longer turn away business due to a lack of production capacity... proceeds from $7 million in Industrial Revenue Bonds issued by IFA are being used to modernize and upgrade manufacturing technology. A 100% employee-owned company, Overton currently provides 141 jobs and projects 20 new jobs in the Addison community. The Overton Gear tax-exempt financing supports the State's efforts to upgrade and retain competitive, state-of-the-art manufacturing companies, keeping quality jobs in Illinois. Overton is also a significant supplier to the emerging Energy industry, manufacturing gears for wind energy turbines. The village of Addison supported this project by providing $3.15 million of volume cap.

SBLV Investments and Jasper Meats, Inc.

Jasper Meats, Inc. is relocating its meat processing plant to the Village of Bloomingdale. Using proceeds from a $3.2 million bond issuance through IFA, they are expanding from a leased 4,000 sq.-ft. shipping and distribution facility to a newly-constructed 25,000 sq. ft. facility located on 2.2 acres of land in Bloomingdale. The relocation project includes the purchase of equipment that will allow for expanded operations, including meat processing, storage, cooling and additional shipping. Jasper is a supplier to small delicatessens, restaurants, banquet halls and medium-size grocery stores. Jasper is doubling its current employment of 16 with the addition of 19 new jobs.

Regis Technologies, Inc.

Illinois' bio-sciences pharmaceutical infrastructure will experience further development with an $8.2 million bond issuance through IFA. Using tax-exempt Industrial Revenue Bonds, this Illinois-based, family-owned manufacturing company is undertaking a significant expansion. Improvements include modernization, expansion of analytical testing and quality control facilities, and increased production capacity – as required by Regis' customers, which include the world's largest pharmaceutical manufacturers, and the US Food & Drug Administration. These plans will allow Regis to remain in Morton Grove long-term. Volume cap was provided jointly by the Village of Morton Grove and IFA. Forty new jobs will be added to an existing staff of 72. Additionally, 25 to 35 construction jobs are expected.

The University of Chicago is making several capital improvements to its Hyde Park campus. Using $500 million in tax-exempt 501(c)(3) Revenue Bonds, a series of construction and renovation projects will be completed over several years. The University, founded in 1890 by John D. Rockefeller, provides education in liberal and professional studies and is among the most prestigious educational research institutions in the world. The University's main campus is located on 211 acres in Hyde Park, 8 miles south of downtown Chicago. The University consists of an undergraduate college and six professional schools. Additionally, the university operates the Graham School of General Studies, the Laboratory Schools, and the University of Chicago Press, the largest academic press in the nation. Up to 100 jobs and 200 construction jobs are projected with this project.

The Chicago School of Professional Psychology will be utilizing $5.1 million in bond proceeds to acquire and renovate classrooms and offices to enhance its information technology operations and to finance other capital improvements. This specialty higher educational organization is operated by practicing psychologists. Fifty new jobs will be added to an existing staff of 191, with an additional 110 construction jobs planned. The Chicago School of Professional Psychology currently serves more than 1,460 students and is projecting approximate growth of 250 to 300 students over the upcoming three years.

The Art Institute of Chicago permanently financed its new three-story, 264,000 sq.-ft. Modern Art Wing with a $140 million bond issuance through IFA. Construction of a pedestrian bridge and other facility renovations are also planned. The Modern Wing now houses much of the Institute's 20th Century art collection, which is considered by art scholars to be among the finest collections of modern art outside of New York. The Institute's mission is to provide appreciation and education in visual fine arts and design. They fulfill this mission through various museum and academic programs and also through the operation of the Ryerson and Burnham Libraries. Ninety-eight new full-time jobs are planned. Over 2,200 workers have participated in project construction. The new Modern Wing opened in May 2009.

Village of West Salem – $130,000

IFA loan funds combined with a Community Development Assistance Program grant from DCEO were used to construct 2,620 feet of replacement waterline that serves as the main supply to the Village's water tower.

Village of Freeman Spur – $85,000

IFA loan funds combined with a Community Development Assistance Program grant from DCEO were used to make improvements to the Village's water system.