Thursday, January 25, 2007
$2.8 Million in Tax Exempt Bonds Approved for Two Company Expansions
Governor Jennifer M. Granholm and Michigan Economic Development Corporation President and CEO James C. Epolito announced today that more than $2.8 million has been approved to help finance business expansions in Genesee and Wayne counties through the Private Activity Bond Program.
The bonds, issued by the Michigan Strategic Fund chaired by Epolito, will support the following projects:
- A $1,647,350 allocation has been approved to help finance the expansion of Vico Products Co. The funding will be used for the acquisition and installation of machinery and equipment to be located at 41555 Ann Arbor Road, Charter Township of Plymouth, Wayne County. Vico Products Co. manufactures small steel parts primarily for the auto industry.
Private activity bonds are issued to finance projects for manufacturers and certain nonprofit corporations. The MSF acts as an intermediary between a borrowing company and lending party to lessen the cost of borrowing because the interest paid to the bond buyer is exempt from federal, state and local taxes.
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