Governmental approval process

The governmental entity’s approval process for issuing an IDB and GE Government Finance's credit review for an IDB will take place concurrently. The issuing process may vary by issuer, but at a minimum, the process includes the following steps.

Bond Issuance Process:

Step 1. Inducement - The governmental entity (conduit issuer) that will issue the IDB approves your company’s request for tax-exempt financing for the capital project by adopting a formal inducement resolution during a regularly scheduled meeting. Costs incurred up to 60 days prior to the date of inducement may be included for reimbursement from tax-exempt bond proceeds.

Step 2. Public Hearing - Federal tax law requires that the general public has the right to comment on the proposed IDB financing at a public hearing. Public notice of the meeting must typically be published 14 days in advance of the scheduled meeting date.

Step 3. State Application - A formal application is made by the conduit issuer to the allocating authority for an allocation of each state’s limited private activity bonding authority as determined by Congress. Each state has its own set of procedures and requirements for a company to receive an allocation of the state’s private activity bonding authority. The state authority may evaluate your project based on the creation of new jobs, retention of existing jobs, the expansion of the real estate tax base or other criteria.

Step 4. Bond Documentation - Bond counsel or our counsel prepares bond documentation acceptable to the governmental issuer, your company and GE Government Finance.

Step 5. Closing - The bond proceeds are typically funded into an escrow account and drawn down as needed. Interest earnings on the escrowed funds accrue to the benefit of your company.

GE’s process

Step 1. Structuring - A GE Government Finance sales representative meets with you to structure a tax-exempt financing proposal that will meet your company’s needs. The sales representative will help you identify the appropriate contacts at the governmental entity involved in issuing the IDB.

Step 2. Credit Approval - Once GE Government Finance receives your acceptance of the proposal, it will conduct an investment review and, if approved, issue a written confirmation of our interest.

Step 3. Bond Documentation - Same as Step 4 in the Bond Issuance Process section.

Step 4. Closing - Same as Step 5 in the Bond Issuance Process section.

How long will the process take?

The time between inducement and bond closing can range from 45 to 120 days.