SHAHEEN ANNOUNCES $225 MILLION AVAILABLE TO NH COMMUNITIES IN BOND AUTHORITY THROUGH THE RECOVERY ACT

(Washington, D.C.) - U.S. Senator Jeanne Shaheen announced today that two new U.S. Department of Treasury programs will authorize $225 million for New Hampshire local governments in bond authority to help communities create jobs and spur economic recovery. The programs will allow local governments to borrow money at a greatly reduced rate to pay for important economic recovery projects such as investing in infrastructure, building public facilities and job training and educational programs. The funding was authorized by the American Recovery and Reinvestment Act (ARRA).

"This new funding will allow New Hampshire's local governments to initiate and continue projects that create jobs, improve infrastructure, and offer other key programs that will get people back to work," said Shaheen. "Like states across the country, New Hampshire's local governments are facing challenging budget shortfalls, and this new bond authority will allow them to continue making critical investments that will help us turn our economy around."

The first program, called the Recovery Zone Economic Development Bond program, authorizes New Hampshire local governments to issue up to $90 million in new bonds for projects such as public infrastructure, construction of public facilities and expenditures for job training and educational programs. Treasury will pay the local governments an advance tax credit equal to 45% percent of the interest on the bonds, meaning the local governments can borrow money for the projects at a much cheaper rate.

The second program, called the Recovery Zone Facility Bond program, authorizes New Hampshire local governments to issue up to $135 million in bonds for private activity. The program creates a new category of tax exempt private activity bonds that may be used by private businesses to finance a broad range of depreciable capital projects, such as facility construction, reconstruction, and renovation. Since the new category of bond is exempt from federal income tax for the bond holder, New Hampshire's local governments will be able to offer the bonds at a lower interest rate and borrow money more cheaply to finance important economic recovery projects for private businesses.

A table detailing the funding available to New Hampshire local governments under these programs and a Treasury Department press release announcing the programs follow: