Common Bond Fund revenue program

This is a loan program for growing manufacturing companies.

The Common Bond Fund

Most of the major manufacturing projects completed in Minneapolis since 1982 have been financed with bonds issued through the Common Bond Fund (CBF.)

The CBF allows us to issue tax-exempt or taxable revenue bonds on behalf of private borrowers to provide lower interest rates on long-term financing.

  • Revenue bonds issued for industrial/manufacturing projects are generally tax-exempt
  • Revenue bonds issued for commercial projects are taxable

The types of projects it funds, include:

  • Land acquisition
  • New-facility construction
  • Additions to existing facilities
  • Purchase and renovation of existing structures
  • Production equipment purchases

Program details

  • Bonds issued through the CBF are investment-grade instruments with an "A+" municipal-bond rating based on the security provided by the CBF, resulting in lower interest rates.
  • CBF revenue bonds are marketed to either institutional investors – insurance companies, banks and pension funds – or sold to the general public through a public offering. This results in interest-cost savings to borrowers.
  • Bond underwriting firms prepare an official statement to market the bonds.

Eligibility requirements

This program provides:

  • Financing for Minneapolis-based owner-occupied manufacturing businesses, with a focus on established businesses with a history of profitability and whose owners provide personal guaranties.
    • Bars, restaurants, entertainment facilities and startup firms are not eligible.
  • Tax-exempt financing for nonprofit organizations with 501(c)(3) status
  • Taxable bonds for commercial projects that would not qualify for tax-exempt bonds.

The CBF can finance up to 90 percent of value, with the borrower providing a minimum requirement of 10 percent equity.

Rates, terms and fees

  • Tax-exempt CBF revenue bonds can be issued below commercial-market interest rates because interest earnings to the purchaser are generally exempt from federal, state and local income taxes.
  • CBF revenue bond financing is fixed-rate, with terms of 20 to 30 years, often at interest rates below market-interest rate.
  • The CBF offers competitive rates and terms on taxable revenue bonds.
  • CBF revenue bond issuance expenses include bond counsel, underwriting, financial advisor, corporate counsel, inspecting architect, title insurance and other fees. These fees may be financed through the revenue bond up to certain limits.


  • A City staff person will handle your revenue bond request from initial inquiry through post-closing monitoring.
  • The complete public approval process takes about 90 days.
  • Approval is based on your project's:
    • Financial strength
    • Credit worthiness
    • Public purpose served, for example preserving and creating jobs or increasing the real estate tax base.

Application materials

  • Narrative on the company and owner(s)
  • Financial statements for the past three years and any interim statements
  • Personal financial statements of anyone owning more than 20 percent of the company
  • General description of the proposed project, plans and estimates of project costs
  • Appraisals and environmental reports about the proposed project

CBF Revenue Bond program benefits

  • Long-term fixed-rate financing to businesses at below-market interest rates
  • Issuance of CBF revenue bonds on either a tax-exempt or taxable basis that can be used to finance industrial, commercial and medical facilities and some nonprofit activities
  • Bonds issued through the CBF are investment-grade instruments with an "A+" municipal bond rating from Standard & Poor’s based on the security provided by the CBF

Contact us

Becky Shaw

Community Planning & Economic Development




Public Service Building
505 Fourth Ave. S., Room 320
Minneapolis, MN 55415