Industrial Development Bonds

Industrial Development Bonds (IDBs) are a type of financing used by state and local governments to support the construction and expansion of facilities for private companies. These bonds are issued at lower interest rates, making it cheaper for businesses to invest in infrastructure, create jobs, and stimulate economic growth. The government typically backs these bonds to encourage development in specific areas. The interest earned by bondholders is often exempt from federal taxes, making IDBs an attractive investment option and promoting business investment in the community.