Industrial Finance Program

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The Industrial Finance Program (IFP) assists clients in managing their wastes, control pollution, building and improving drinking water, wastewater, and solid waste facilities, and complying with environmental regulations. IFP low-cost loans are financed through proceeds of special obligation revenue bonds issued by EFC and are backed by the credit of the borrower. Through IFP, EFC has loaned over $500 million to New York businesses for projects that manage waste, control pollution, and build drinking water and wastewater treatment facilities 

Depending on the particular facilities financed, the interest on these bonds is generally exempt from federal, state and local income taxes, thereby resulting in lower interest rates for the borrower.

Subject to certain federal and state law requirements and approvals, including obtaining state tax-exempt bond volume cap, there is usually no limit on the amount of an IFP bond offering. However, the minimum cost-effective amount of an IFP financing is approximately $10 million, due to closing costs associated with issuing bonds. IFP bonds may be amortized for a term of up to 40 years, depending on the useful life of the facilities financed and other factors. 

EFC's special obligation revenue bonds are not obligations of the State of New York or any political subdivision thereof, and are only limited obligations of EFC. The client and the project are generally the source of revenue or repayment of principal and interest on the IFP bonds. 


The IFP may finance the following types of facilities on a tax-exempt basis if 95% or more of the net proceeds are used to fund these following types of facilities. Generally, projects must have a public benefit in order to qualify for tax-exempt status.

  • Solid waste facilities and equipment for the handling, disposal, transportation, and recycling of solid waste such as municipal solid waste landfills, construction and demolition landfills, ash-fills, hauling/transport equipment and transfer stations, resource recovery facilities, and recycling facilities and equipment. Bond Counsel options as to eligibility are usually required.
  • Sewage treatment facilities for privately owned wastewater treatment facilities serving the public, including sewers, piping, force mains, pumps, clarifiers, and sludge handling facilities that fall below D.O.B. limits. 
  • Drinking water supply and management facilities such as mains, piping, wells, treatment works, finished water reservoirs, and other storage facilities for public use.
  • Industrial hazardous waste disposal facilities for landfill and incineration of hazardous waste, and capital costs associated with Brownfields site remediation. 

Eligible expenses of IFP loans include project design and engineering, purchase of land and appurtenant facilities, construction or acquisition of project facilities, equipment purchase and installation, as well as legal fees and other capital costs.

Other types of environmental facilities may be financed with taxable IFP bonds. In certain cases, the most economical way to finance a particular project may be to use funding from both the IFP and EFC's New York State Clean Water State Revolving Fund and Drinking Water State Revolving Fund programs. Please contact EFC for more information.