GO Zone Tax-Exempt Bond Financing

The GO Zone tax-exempt bond financing program is perhaps one of the strongest incentives ever contrived for the development of economic opportunity in the Gulf Coast area. The GO Zone tax-exempt bond financing program authority granted to Louisiana, Mississippi, Florida and Texas provide businesses with the opportunity to obtain non-recourse, low cost loans for the development of business enterprises in these states - principally in the areas hit by Hurricanes Katrina, Rita, and Wilma, but also in areas not as heavily damaged (but still may be eligible for assistance under the GO Zone Act). The areas that are not as heavily damaged are probably those areas that present the greatest near-term opportunity for application of the GO Zone tax-exempt bond financing program funds authority. In this regard, Mississippi - and to a lesser extent, Louisiana - present the greatest opportunities for economic development for businesses considering a relocation and/or additional location development. Having said that, we always keep in mind that opportunity lies wherever you might find it.

Some of the key issues pertaining to GO Zone tax-exempt bond financing include:

Mississippi. Mississippi requires credit enhancement on all tax-exempt issues. This means further underwriting must be undertaken and so the due diligence documentation burden is comparable to the requirements a borrower would have for a conventional loan. The payoff is the tax-exempt financing rate that is typically 125 to 175 bps. lower than the conventional loan market interest rate for the same maturity and amortization.
Louisiana. Louisiana has decided to squander nearly all of its additional bond authority on the production of low income housing in hopes of undertaking a social engineering experiment that defies explanation (placing market rate housing tenants in the same building as rent assisted low-income tenants - a practice that was phased out in the '70's due to its manifest ability to create slums) but will likely create an institutionalized entitlement zone resulting in Louisiana becoming the poorest state in the country. This condition will likely result in a ready pool of very low cost labor being made available for new business ventures that are labor intensive without the attending union requirements in the near-term. This will dictate a business strategy of developing assets with additional public finance plan benefits and/or real property tax deferments in the near-term to offset future relocation costs when the state eventually mandates wage increases that will stifle competition. DID YOU KNOW THAT LOUISIANA AUTHORIZED APPROXIMATELY $675 MILLION IN "PAB" GO ZONE BOND FUNDING AND APPROVED $200 MILLION OF THAT AUTHORIZATION FOR A RAINMAKER CLIENT PROJECT?

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Historically, Rainmaker has focused on serving the following client group industries and markets:

Senior Housing (assisted living, independent living, congregate care, and CCRC's)
Long-Term Care (skilled nursing and intermediate care facilities)
Health Care (acute care facilities, MOB's, clinical facilities, specialty care facilities, etc.)
Hospitality (hotels, motels, food service, mixed-use, resorts, etc.)
Multifamily Housing (rental, fee simple, condo, etc.)
Retail/Mixed-Use (neighborhood, regional, big-box, power centers, etc.)
Master-Planned Communities (single-family tract housing, large-scale MPC's, etc.)

About Rainmaker Marketing Corporation...

Rainmaker Marketing Corporation is a consulting firm that focuses on providing the due diligence services on a business to business (B2B) basis. Rainmaker Marketing Corporation can trace its roots back to the late '80's and was formally incorporated in 1994.

Over the years, Rainmaker Marketing Corporation consultants have completed hundreds of assignments across the United States (45 states), Mexico, Canada and the Caribbean Basin. RMC's new construction project due diligence documentation services have led to the successful development of income-producing properties valued (in the aggregate) in the billions of dollars.

Take a few minutes and learn more about RMC. This website is designed to provide a wealth of planning information pertaining to the capitalization, operations, and organizational program tenets today's savvy entrepreneurial company must embrace for continued growth and success...

Contact Information

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Telephone:: 281-537-1200
Postal address:: 15519 Dawnbrook Drive, Houston, Texas 77068
Electronic mail:: General Information & Consulting Queries: clint@rainmakermarketing.com