Technical Assistance

MAMBA - Overview

The Modernizing Agricultural and Manufacturing Bonds Act

The Modernizing Agricultural and Manufacturing Bonds Act (MAMBA) is a common-sense, bipartisan, targeted reform package that will modernize two categories of qualified small issue private activity bonds: Small Issue Manufacturing Bonds (more commonly known as Industrial Development Bonds (IDBs)), and First-Time Farmer Bonds (also called Agricultural Bonds, or simply Aggie Bonds). These types of bonds are key economic development tools used by state and local agencies to finance the small- to mid-sized manufacturing and agricultural sectors.

Unfortunately, IDBs and Aggie Bonds have not been modernized in over 30 years, causing stagnation and decline in these respective industries. Over the past decade, IDB and Aggie Bond issuances have substantially declined due in major part to the outdated rules and regulations that govern the use of these bonds. The six reforms contained within MAMBA will update the Internal Revenue Code (IRC)'s private activity bond rules for IDBs and Aggie Bonds. The six reforms are as follows:
  1. Expand the definition of “manufacturing facility”
  2. Eliminate restrictions on “directly related and ancillary facilities”
  3. Increase the maximum IDB size limitation from $10 million to $30 million, indexed to inflation
  4. Increase the limitation on small issue bond proceeds for first-time farmers to $1 million
  5. Repeal the separate dollar limitation on the use of small issue bond proceeds for depreciable property
  6. Align the IRC's definition of “substantial farmland” with the FSA's
Below you will find links and resources to learn more, send support letters, and sign a support petition to help pass the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA).

Overview of MAMBA

+Current Status of MAMBA

+Join CDFA's Coalition to Show Your Support

+Key Reforms to Small Issue Bonds

+Endorsements of MAMBA

Questions or concerns? Contact Mitchell Smith, CDFA's Director of Government and External Affairs..

CDFA National Sponsors

  • Alliant Insurance Services, Inc.
  • BNY Mellon
  • Bricker Graydon LLP
  • Business Oregon
  • CohnReznick
  • Frost Brown Todd LLP
  • Grow America | Formerly NDC
  • Hawes Hill and Associates LLP
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • PGAV Planners, LLC
  • Raza Development Fund
  • SB Friedman Development Advisors
  • Stifel Nicolaus
  • The Bond Buyer
  • U.S. Bank
  • Wells Fargo Securities
Become a Sponsor