Eastern Illinois Economic Development Authority

The Eastern Illinois Economic Development Authority (EIEDA) was created by action of the Illinois General Assembly and the Governor. EIEDA is a general development agency for the counties of Ford, Iroquois, Piatt, Champaign, Vermilion, Douglas, Moultrie, Shelby, Coles, and Edgar. The Authority's financial and supportive powers enable it, with the written approval of the Governor of the State of Illinois to Issue Taxable or Tax-Exempt Bonds for the purpose of developing, constructing, acquiring or improving properties or facilities for business entities locating in or expanding within the territorial jurisdiction of the Authority. On July 13, 2005, Public Act 94-203 was signed into law to create EIEDA which has a fourteen member body of which three are appointed by the Governor with consent of the Senate, ten are appointed by each of the County Board Chairmen if EIEDA and one member of the Director of the Department of Commerce and Economic Opportunity. EIEDA has not issued any bonds to date, but is authorized to issue up to $250,000,000 in bond financing.

EIEDA Powers

EIEDA 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, EIEDA 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 EIEDA include providing savings of 2-3% lower than conventional financing for manufacturing, allowing all types of non-manufacturing a savings of 1.0-1.5% through a state mechanism that provides a quasi-guarantee of the loan and low operational overhead.

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© 2007 Eastern Illinois Economic Development Authority - EIEDA