IDB's provide an alterative financing method for firms relocating or expanding in the City of Camarillo. The Internal Revenue Code of 1986 limits the availability of tax-exempt financing to manufacturing or processing facilities and equipment. Generally manufacturing or processing entails the production of tangible personal property or value-added processing. Qualified businesses locating in the City of Camarillo are eligible for tax credits, low interest loans, feedstock acquisition assistance, business plan assistance, promotion and capital network access.
Funds are available at below market interest rates for up to a ten year term.
The program limits the bank's exposure and allows lenders to consider larger loan requests. SBA loan proceeds may be used for any legitimate business purpose. Sufficient assets must be pledged to adequately secure the loan to the extent that they are available. Personal guarantees are required from all principal owners and from the chief executive officer of the business. Liens of personal assets of the principals also may be required where business assets are considered insufficient to secure the loan.