Recovery Zone Facility Bond Program

The American Recovery and Reinvestment Act (ARRA) created a new category of bonds called Recovery Zone Facility Bonds. These bonds are intended to stimulate the economy by providing the private sector with access to lower-cost financing compared to traditional methods. Recovery Zone Facility Bonds are "private activity" bonds, the proceeds of which are exempt from the gross income of obligation holders for federal tax purposes.

Facility Bonds may be used to help businesses finance the acquisition, construction, and/or rehabilitation of property used in their businesses, and for the purchase of equipment used in their trade or business. Kane County has been authorized to issue up to $25,230,000 in Recovery Zone Facility Bonds for projects located within the corporate limits of the county, but outside the Cities of Aurora and Elgin, which received separate allocations.