What is it? Private Activity Revenue Bonds (PARBs) are a means of financial assistance for economic development efforts. The Michigan Strategic Fund (MSF) issues the PARB, lending the bond proceeds to the borrower.

Who's eligible? Manufacturing projects, not-for-profit corporation projects and solid waste facilities are eligible.

How much is available? The maximum size of bonds is limited to:

1. $1,000,000 free of any restrictions on capital expenditures, or,
2. $10,000,000 subject to the condition that the company’s total capital expenditures in the locality over the period of three years before and three years after the date of issuance do not exceed $10,000,000.

What are the terms for agreement? Manufacturing projects are restricted to purchasing land, building, and equipment. Other non-core items such as warehouse space are ineligible for funding, unless they are directly related to the manufacturing process and do not exceed 25% of the projects.

For more details and information on the Private Activity Revenue Bond financing program click here.