Technical Assistance


Bond Finance Resource Center

Bonds are the bedrock of public development finance. In its simplest form, a bond is a debt or a loan incurred by a governmental entity. The bonds are issued and sold to the investing public, and the proceeds are typically made available to finance the costs of a capital project. If the bonds are being issued for the benefit of a non-governmental borrower, the proceeds are often loaned to such borrower, and the borrower then makes loan payments corresponding to when principal and interest are due on the bonds. Bondholders receive interest over the term of the bonds, and such interest is often exempt from federal, state and local income taxes. The tax-exempt status of certain bonds makes them an attractive investment option for investors.

There are two types of bonds: Governmental Bonds (GOs) and Private Activity Bonds (PABs). GOs may be used for many public purposes (e.g., highways, schools, bridges, sewers, jails, parks, government equipment and buildings, etc.). Private entities may not significantly use, operate, control or own the facilities that are being financed. GOs benefit the general public, while PABs benefit private entities. A bond issuer’s objective is to raise capital at the lowest cost. The tax-exempt treatment of GOs makes them the lowest cost option. However, various “private activity tests” serve to limit the amount of private sector involvement with facilities that are financed with GOs. PABs permit a larger degree of private sector involvement, but they do so at a higher interest rate. In the economic development industry, PABs are the development finance mechanisms that drive projects involving both the public and private sector.

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-Types of Bonds

-Industrial Development Bonds (IDBs)

Industrial Development Bonds (IDBs), which are often referred to as Small Issue Manufacturing Bonds, are issued for qualified manufacturing projects, with a total bond issuance limit of $10 million. These bonds can support expansion and investment in existing manufacturing facilities, as well as the development of new facilities and the purchase of new machinery and equipment.

Industrial Development Bond FinancingMembers only Login
This resource deals with tax-exempt bond financing. This is a special form of financing available for construction of new manufacturing facilities, for an expansion of existing manufacturing facilities and for rehabilitation of existing manufacturing facilities.
Industrial Development Bonds: An Often Overlooked Opportunity for ExpansionMembers only Login
Industrial development bonds (IDBs) are a relatively unpublicized and often misunderstood source of tax-advantaged financing for business that declined in usage during the recession. Now, however, as the economy strengthens and companies begin to consider new equipment and new projects to expand operations, IDBs are worth a closer look.
Bonds for ManufacturersMembers only Login
Several case studies on bonds used for industrial purposes are presented by Jeff Demonbrun of Gates Capital.
Financing Mechanisms for Addressing Remediation of Site Contamination
This report, produced by CDFA for the World Bank, is intended to provide information to communities and countries interested in identifying potential financing tools for the remediation and redevelopment of contaminated industrial sites. Specific audiences who will find this report useful include finance officials, contaminated site program managers, and economic developers.
The Power of Private Activity Bonds (PABs) Case Studies: Industrial Development BondsMembers only Login
Mr. Russell Goings, III Senior Vice President of Hutchinson, Shockey, Erley & Co. presented the Power of Private Activity Bonds and four industrial development bonds case studies.
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-Renewable Energy / Energy Efficiency Bonds

Financing Low-Carbon Buildings and Energy Efficiency in the Green Bond MarketMembers only Login
There are substantial opportunities to leverage green bonds to finance low-carbon buildings and energy efficiency in the country. Issuance across the world shows that capital markets can be accessed to finance energy efficiency and buildings. Financing climate adaptation and resilience also presents opportunities.
Growing Green Bond Markets: The Development of Taxonomies to Identify Green Assets Members only Login
Green bond guidelines are being implemented across the globe to support issuers and investors in selecting and reporting on suitable projects. However, a gap of adoption of green definitions remains, suggesting the need to develop consistent approaches that can increase the capability of issuers and investors to identify eligible green and sustainable assets.
Building Resiliency Through Green InfrastructureMembers only Login
Cities have recently integrated more green infrastructure strategies into their climate resiliency planning. Creating climate-resilient cities takes more than a series of infrastructure investments; more than sea walls and permeable pavement. It takes investment in people. Those most vulnerable to the effects of climate change are those without living wages or access to political power—very often communities of color.
CDFA - PFM Capital Markets Webinar Series: Financing for Climate ResilienceMembers only Login
During this webinar, Eric Espino with PFM, Heather Green with the City and County of San Francisco, and Bob Gamble with PFM discussed how cities are addressing the challenges of climate change and the types of bond and financing structures being used to build more resilient communities.
Growing the U.S. Green Bond MarketMembers only Login
The United States’ deteriorating infrastructure is woefully underprepared to address the challenge of adapting to climate change. The funding gap has presented an opportunity for global capital markets to create investment vehicles that provide long-term yield, while also helping communities mitigate or adapt to the effects of global warming. One such vehicle that has arisen in the past decade is the green bond: a traditional fixed income security with an additional layer of environmental sustainability.
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-Post-Issuance Compliance

CDFA - PFM Capital Markets Webinar Series: What Your Bond Finance Team Worries AboutMembers only Login
During this webinar, Bethany Pugh, Managing Director at PFM, Todd Fraizer, Managing Director at PFM, Austin McGuan, Director, Stifel Nicolaus & Company, Matthew Eisel, Managing Director at PFM, and Robert McCarthy, Partner with Bricker & Eckler LLP discussed what bond finance teams across the country worry about.
CDFA - PFM Capital Markets Webinar Series: Regulatory Landscape with MSRB and SEC FrameworkMembers only Login
This session discussed the recent amendments and how to prepare. The discussion included insights and reminders about how to remain compliant in all areas from main regulatory bodies for bond financing in the capital markets. Speakers on this session included Teri Guarnaccia with Ballard Spahr LLP, Leo Karwejna with Public Financial Management, and Julia Cooper with the City of San Jose.
2019 Proposed Bond Reissuance RegulationsMembers only Login
The Department of the Treasury's IRS released new Proposed Regulations regarding Bond Reissuance. The Proposed Regulations address the subject of “reissuance” in connection with issues of tax-exempt obligations. The Proposed Regulations generally follow the guidance set forth in IRS Notice 2008-41, 2008-1 CB 742.
IRS Publication 5005- Your Responsibilities as a Conduit Issuer of Tax-Exempt BondsMembers only Login
The IRS Publication 5005 provides an overview for state and local governments of the responsibilities of the conduit issuer with respect to the tax compliance in municipal financing arrangements commonly known as conduit financings.
Primer On Monitoring Post-Issuance ComplianceMembers only Login
This audio cast from the IRS covers the importance of implementing post-issuance compliance procedures and regularly monitoring those procedures to preserve the status of tax-advantaged bonds over the entire life of the bonds. Tax-advantaged bonds, includes tax-exempt bonds, tax credit bonds, and direct-pay bonds.
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-Volume Cap

National Volume Cap Map

How the Cap Is Used


-Training Courses

CDFA’s highly acclaimed Intro Bond Finance Course provides an in-depth look at governmental and qualified private activity bonds, with a focus on industrial development bonds (IDBs), 501(c)(3) non-profit bonds, exempt facility bonds, and other special bond programs authorized by the federal government.

The Intro Bond Finance WebCourse will address the basic requirements for issuing a bond, the rules and regulations that govern tax-exempt and taxable bonds, the major players involved in a bond transaction, and the roles and responsibilities of both public and private sector participants. Plus, learn about the tax-exempt bond market, the ratings process, how to buy and sell bonds, and ongoing continuing disclosure.

The Advanced Bond Finance Course is designed for professionals who already have an understanding of tax-exempt financing and seek detailed instruction on complex financing techniques, including the application of financial derivatives, advance refundings, investing bond proceeds and how to spot arbitrage issues. This course is an ideal opportunity to enhance your knowledge and maximize your community's ability to finance economic development using tax-exempt bonds.


CDFA // BNY Mellon Webcast Series: Analysis of the 2018 CDFA Volume Cap Report and Capital Markets ReviewMembers only Login
The annual CDFA Volume Cap report is an essential outline of national private activity bond issuance trends and is used by issuers, researchers, trade groups, and political offices to understand the private activity bond landscape. During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we examined the recently released 2018 Volume Cap Report in fine detail as well as discussed the fourth-quarter outlook of the capital markets.
CDFA // BNY Mellon Webcast Series: Conduit Bond Fees - A Look Behind the NumbersMembers only Login
As the bond market changes, bond issuers must work diligently to keep their fee structures up to date. During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we looked beyond the fee structures and broke down the philosophies behind them, with the goal of sharing innovative thinking throughout the bond industry and provide a qualitative look behind CDFA’s Conduit Bond Fee Study.
2019 Q2 CDFA Quarterly Legislative Update
In the second Quarterly Legislative Update of 2019, CDFA's Legislative Team discussed progress on pending CDFA legislation, other pending development finance legislation such as extenders, as well as what to expect from Congress in the coming months.
CDFA // BNY Mellon Webcast Series: The Landscape of Mega Project InitiativesMembers only Login
During this installment of the CDFA // BNY Mellon Webcast Series, expert speakers from CAI Global, Baltimore Development Corporation, Arlington Economic Development, and VEDP provided an in-depth overview of the approaches being used by cities, counties, and states to attract mega projects like Amazon HQ2 and Under Armour.
CDFA - PFM Capital Markets Webinar Series: What Your Bond Finance Team Worries AboutMembers only Login
During this webinar, Bethany Pugh, Managing Director at PFM, Todd Fraizer, Managing Director at PFM, Austin McGuan, Director, Stifel Nicolaus & Company, Matthew Eisel, Managing Director at PFM, and Robert McCarthy, Partner with Bricker & Eckler LLP discussed what bond finance teams across the country worry about.


CDFA National Sponsors

  • Alaska Industrial Development and Export Authority
  • Baker Tilly Virchow Krause
  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave Leighton Paisner LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Fifth Third Bank
  • Frost Brown Todd, LLC
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McCarter & English, LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • Petros PACE Finance
  • SB Friedman Development Advisors
  • Stern Brothers
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Wilmington Trust
  • Z. The Bond Buyer
Become a Sponsor