Georgetown, Del., July 21, 2009: Sussex County will participate in a new federal program that will lend millions of dollars in bonds to businesses expanding or adding jobs, all in the hope of stimulating the local economy.

County Council, at its Tuesday, July 21, 2009, meeting, approved a resolution to participate in the federal government’s Recovery Zone bond program, designating the entire County, with the exception of State- and federally-owned property, as a Recovery Zone. The County will not actually lend the money, but will instead review and approve applications for the funding.

Under the American Reinvestment and Recovery Act of 2009, also known as the ‘stimulus package,’ $15 billion in federal funds was set aside for Recovery Zone Facility Bonds for businesses, and another $10 billion in Recovery Zone Economic Development Bonds for local governments. Together, the mix of tax-exempt and federally subsidized, taxable bonds are intended to keep down borrowing costs on private and government construction projects.

“The federal government recognizes that one important way to improving the economy starts right here, at the local level,” County Council President Vance Phillips said. “With these funds, Sussex County and its businesses will receive a much-needed economic shot in the arm.”

States, extending down to municipalities and counties with populations greater than 100,000, are allocated a percentage of the funds based on unemployment trends, so areas hit hardest by the national economic downturn are given the greatest share. The U.S. Treasury Department has allocated $135 million to Delaware, with approximately $25 million in Recovery Zone Facility Bonds for Sussex County businesses.

Eligible businesses can apply to the County now, and all bonds must be issued by Dec. 31, 2010. While the County will lend its name on the bonds, those borrowing the money, not local taxpayers, would be responsible for re-payment of the debt.

“We would encourage businesses to consider this type of funding as a way to reduce costs and make their projects more feasible,” County Administrator David B. Baker said. “In the long run, we believe this can add jobs and strengthen our overall economy.”

For more details on the program or to submit an application, contact the Sussex County Economic Development Office at (302) 855-7770.

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