Bond Application FAQs

How long is the Phoenix IDA’s portion of the bond financing process, from initial application to final approval?

It depends on several factors, but once a complete application is received, it generally takes approximately 60-90 days from the time the complete application is processed to the time the bond issuance receives Phoenix City Council approval. It is vital to note that the bond issuance must receive Phoenix City Council approval before it can be issued.

Is there a minimum number of jobs that must be created in order to qualify for bond financing?

No minimum is required.

Is there a minimum or maximum amount of financing that can be requested?

There generally is no minimum amount. However, due to financing costs, it is not normally cost effective to pursue financing for less than $2 million. Subject to federal tax law constraints on certain types of bonds, the only general limit is how much the market will bear.

Are the bonds general obligations of the City of Phoenix or the Phoenix IDA?

No. There is no pledge of funds from either the City of Phoenix or the Phoenix IDA. The bonds are repaid by the borrower.

What is the typical cost of this type of bond financing?

There are no set numbers or a formula to go by. However, in general, the cost of the financing should not exceed 3-4% of the total amount financed.

Does the Phoenix IDA assist in finding bond purchasers?

No. The Phoenix IDA recommends that all applicants for bond financing have their financing team in place prior to submitting an application. The bond financing team will probably include an underwriter that can assist in this part of the process. Please note that the financing team is subject to the Phoenix IDA's approval.

How does an applicant seek help in completing the application?

The Phoenix IDA will assist with general questions. In addition, counsel identified as part of the applicant’s financing team should be able to provide any additional assistance.

For questions or additional information please contact Mike Santellanes at (602) 262-7644 or msantellanes@phoenixida.com.