Recovery Zone Facility Bonds Can Help Relieve Tight Commercial Credit Market

Towson, Md. (October 7, 2009)—Baltimore County businesses and commercial developers may find some relief from the tight commercial lending market through Recovery Zone Facility Bonds, a new financing vehicle that is part of the American Recovery & Reinvestment Act. A $48.8 million allocation from the federal government will enable Baltimore County to issue these bonds, which effectively allow businesses to borrow funds from a commercial bank at below market interest rates. 

Interested parties must file a brief questionnaire and project summary with the Baltimore County Department of Economic Development by November 16, 2009. Filing information is available on the County's web site or by calling Stanley Jacobs in the Baltimore County Department of Economic Development, 410-887-8000.

Projects Move Forward

"Recovery Zone Facility Bonds are tangible evidence of how the federal stimulus can directly help private sector projects move forward," said Baltimore County Executive Jim Smith. "Priority for issuing Baltimore County's Recovery Zone Facility Bonds will be given to projects located in the County's designated commercial revitalization areas or projects that support employment-generating uses." 

Proceeds of Recovery Zone Facility Bonds can be used for the purchase and renovation of real estate and the purchase of new equipment. These tax exempt bonds can be used by most commercial businesses and development projects, with certain exceptions such as rental housing and golf courses excluded by federal law.

All Baltimore County projects must be valued at a minimum of $1 million and complete a pre-concept plan review by County agencies. In order to allow adequate time for the bond process, plan approval suitable for financing must be completed by July 2010. By federal law, all Recovery Zone Facility Bonds must be issued before January 1, 2011.

Baltimore County will not incur any financial liability as a result of issuance of these bonds.