| The Rhode Island Industrial-Recreational Building Authority issues debt insurance on eligible projects. Project limit is $5,000,000; the aggregate portfolio insurance capacity of the Authority is $80,000,000. Maximum insured mortgage as a percentage of project amount is: Real Estate 90%; Machinery & Equipment 80%; and Travel/Tourist Facilities 75% (Real Estate project amount is based on an as-completed appraisal). The project term may not exceed twenty-five years for real estate, twenty-years for machinery and equipment, and must fully amortize over the term. Eligible projects are: manufacturing, processing, office, wholesale, retail and travel/tourist facilities. Approved uses of funds include: new building, acquisition, expansion/rehabilitation of existing buildings, new and used machinery, and equipment. Mortgage insurance premiums are calculated on the outstanding principal balance of the mortgage: (at the time of publication) 1% to 3%, per annum. The Rhode Island Industrial-Recreational Building Authority must be in a first position on all projects. Projects are required to issue a first mortgage and first security agreement to the Rhode Island Industrial Facilities Corporation (in its capacity as a local development corporation). |
