Industrial Revenue Bond Program

Industrial Revenue Bond Program

Provides tax exempt conduit financing through JEDA for manufacturing, nonprofit, and solid waste facilities in South Carolina.

Eligibility · United States · US-SC

The South Carolina Jobs-Economic Development Authority (JEDA) Industrial Revenue Bond Program provides tax-exempt conduit bond financing for qualifying capital projects in South Carolina. JEDA acts as the conduit issuer, lending its tax-exempt status to eligible borrowers so they can access capital markets at lower interest rates than would be available through taxable debt. The program is authorized under South Carolina law and targets three specific project types: manufacturing facilities, 501(c)(3) nonprofit organizations, and solid waste disposal facilities. By channeling private capital investment through tax-exempt bonds, the program reduces borrowing costs for qualifying enterprises undertaking facility construction, expansion, or equipment acquisition in South Carolina.

This is a debt instrument — bonds are issued into the private capital markets and must be repaid by the borrowing entity. JEDA itself does not lend money; it provides the legal conduit structure that confers tax-exempt status on the bond interest received by investors. Eligible applicants include for-profit manufacturing companies and 501(c)(3) nonprofits operating or establishing operations in South Carolina, as well as solid waste disposal facility operators. There is no minimum or maximum bond size specified in the program guidelines, though practical capital market minimums typically apply.

Applications are submitted to JEDA's offices in Columbia, South Carolina. The process involves legal counsel, underwriters, and JEDA staff to structure and execute the bond issuance. Manufacturing companies constructing or expanding South Carolina facilities and nonprofits seeking lower-cost capital for fixed assets are the primary users of this instrument. The tax-exempt nature of the bonds typically generates 1–2 percentage points of interest rate savings versus taxable alternatives, representing material cost reduction on large capital projects.