Bond Application FAQs
How long is the Phoenix IDA's portion of the bond financing process, from initial application to final approval?
It depends on several factors, but once a complete application is received, it generally takes 60-90 days from the time the application is processed to the time the bond Proceedings are considered by the Phoenix City Council. It is vital to note that the bond Proceedings must receive City Council approval before the bonds can be issued.
Are there a minimum number of jobs that must be created in order to qualify for bond financing?
No minimum is required.
Is there a minimum or maximum amount of financing that can be requested?
There generally is no minimum amount. However, due to financing costs, it is not normally cost effective to pursue bond financing for less than $2 million. Subject to federal tax law constraints on certain types of bonds, the only general maximum limit is how much the market will bear.
Are the bonds general obligations of the City of Phoenix or the Phoenix IDA?
No. There is no pledge of funds from either the City of Phoenix or the Phoenix IDA. Repayment of bonds becomes the sole obligation of the borrower.
What is the typical cost of this type of bond financing?
There are no set numbers or a formula to go by. It depends on various factors, including the type of transaction. Bond counsel to the transaction can provide further details.
Does the Phoenix IDA assist in finding investors?
No. The Phoenix IDA recommends that all applicants for bond financing have their finance team and financing structure in place prior to submitting an application. The bond finance team may include an underwriter that can assist in this part of the process. Please note that the finance team is subject to the Executive Director's approval.
How does an applicant seek help in completing the application?
The Phoenix IDA will assist with general questions. In addition, applicant counsel identified as part of the applicant's finance team should be able to provide any additional assistance.
For more information, please contact Mike Santellanes at (602) 262-7644 or firstname.lastname@example.org.