Taxable Bond Program

Taxable Bond Program

Provides taxable conduit bond financing through JEDA for additional South Carolina projects outside tax exempt categories.

Eligibility · United States · US-SC

The South Carolina Jobs-Economic Development Authority (JEDA) Taxable Bond Program extends the authority's conduit bond financing capacity to enterprise types and project categories that fall outside the scope of the tax-exempt Industrial Revenue Bond program. Where federal tax law restricts tax-exempt bond issuance to manufacturing, 501(c)(3) nonprofits, and solid waste facilities, the Taxable Bond Program enables JEDA to serve a broader range of South Carolina economic development projects by issuing taxable conduit bonds. JEDA acts as conduit issuer — the borrower uses JEDA's governmental status to access the bond markets, though interest on these bonds is taxable to investors, resulting in higher borrowing costs than tax-exempt equivalents.

This is a debt instrument requiring repayment by the borrowing entity; JEDA does not provide grant capital. Both for-profit and nonprofit entities are eligible. The program is sector-agnostic — any enterprise type that can demonstrate a South Carolina economic development nexus and cannot qualify under the IRB program may apply. No minimum or maximum bond size is specified in program materials, though market minimums typically govern practical issuance. Registered U.S. entities with operations in South Carolina are the eligible applicant class.

Applications are coordinated through JEDA's Columbia, South Carolina offices and require engagement with bond counsel and underwriters. The Taxable Bond Program is best suited to enterprises in commercial, retail, hospitality, or other sectors ineligible for tax-exempt treatment, seeking lower-cost or more flexible capital structure than conventional bank financing. The primary benefit is access to the bond market through a government conduit, which can enhance borrower creditworthiness perceptions and expand the pool of potential capital providers beyond traditional bank lenders.