Technical Assistance


Pass the Modernizing American Manufacturing Bonds Act

CDFA proposes a set of efficient and effective reforms to the laws governing Qualified Small Issue Manufacturing Bonds. The Modernizing American Manufacturing Bonds Act is a comprehensive reform package that will modernize Qualified Small Issue Manufacturing Bonds, more commonly known as Industrial Development Bonds (IDBs), or simply “manufacturing bonds.” Manufacturing bonds are a type of Private Activity Bond (PAB) that allow the public sector to pass considerable interest rate reductions on to private companies who wish to expand capacity and create jobs.

Manufacturing bonds are the single most actively used bond for financing small- to mid-sized manufacturing sector growth and is a key economic development tool for state and local economic development agencies.

The following four reforms will expand the capacity and usability of manufacturing bonds to help create American jobs now:

1. Expand the definition of "manufacturing" to meet the needs of twenty first century manufacturers by permitting bond financing for both tangible and intangible production

2. Eliminate restrictions on "Functionally Related and Subordinate Facilities" for manufacturing bonds to avoid arbitrary challenges and unnecessary inefficiencies that are currently associated with issuances

3. Increase the maximum bond size limitation from $10M to $30M for manufacturing bonds.

4. Increase the capital expenditure limitation from $20M to $40M for manufacturing bonds.

Legislative language for the Modernizing American Manufacturing Bonds Act has been drafted by CDFA, and was introduced in the House of Representatives in 2017 by Reps. Hultgren (R-IL), Neal (D-MA), and Renacci (R-OH).

Learn more about the Modernizing American Manufacturing Bonds Act.

Read the 2018 Policy Agenda

CDFA National Sponsors

  • Alaska Industrial Development and Export Authority
  • Baker Tilly Virchow Krause
  • Ballard Spahr LLP
  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave Leighton Paisner LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Frost Brown Todd, LLC
  • Grant Thornton LLP
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • MB Financial Bank, NA
  • McCarter & English, LLP
  • McGuireWoods
  • NW Financial Group, LLC
  • SB Friedman Development Advisors
  • Squire Patton Boggs
  • Stern Brothers
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Wilmington Trust
  • Z. The Bond Buyer
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