Central IL Economic Development Authority (CIEDA)
On July 3, 2006, the Governor of Illinois signed Public Act 94-995 to create the Central Illinois Economic Development Authority (CIEDA). This Authority provides a powerful new financing tool for economic development in Calhoun, Christian, DeWitt, Greene, Jersey, Logan, Macon, Macoupin, Menard, Montgomery and Sangamon Counties. The Authority has the ability to issue up to $250 million in bonds for economic development purposes. CIEDA is a general development agency for the 11 counties and is one of ten such regional organizations within the State of Illinois. CIEDA can issue bonds on behalf of businesses in which debt service is payable exclusively from the earnings of the borrower. In issuing revenue bonds for the borrower, CIEDA acts as a “conduit” or “middle-man.” The bonds are sold to insurance companies, banks, mutual funds or brokerage houses on behalf of individuals. The proceeds of the sale are made available to the borrower for the project. The borrower then pays the money back directly to those who bought the bonds. The major advantages of CIEDA include providing savings of 2-3% lower than conventional financing for manufacturing. CIEDA generally does not seek donations or charge any type of membership fee. CIEDA operates from fees charged companies to issue these bonds. The companies that pay these fees recapture the fee by the lower interest rate savings, generally within the first few months of the bond. Public members shall be persons of recognized ability and experience in one or more of the following areas: economic development, finance, banking, industrial development, state or local government, commercial agriculture, small business management, real estate development, community development, venture finance, organized labor, or civic or community organization.