Senator Brown on Ohio Recovery Zone Bonds

Funding to Create Jobs and Stimulate Economic Growth in Ohio

June 19, 2009 -- WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH) announced $1,056,592,000 in recovery zone bonds to increase financing available to communities across Ohio. The federal funds will be distributed through the U.S. Department of Treasury and were made available through the American Recovery and Reinvestment Act of 2009.

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“This is a boost to Ohio’s auto communities. At a time when many are experiencing economic challenges, it is critical that we provide our communities with tools to promote economic development, create new jobs, and drive growth,” Brown said. “Providing financing to local and state governments is at the cornerstone of stimulating development in areas that have experienced economic hardship.”

The recovery zone bonds will benefit Ohio communities experiencing significant poverty, unemployment, home foreclosures, and other economic distress. With local budgets being cut due to the recession, the bonds are expected to help counties and municipalities obtain financing for economic development projects at lower borrowing costs.

Under the financing, $422,367,000 will be directed to economic development bonds, which allow state and local governments to obtain lower interest funding to support economic development projects, such as infrastructure development, job training, and education programs. In addition, $633,955,000 will be funneled to facility bonds, which allow private businesses to obtain tax-exempt financing to fund job-creating capital projects.

These bonds could also be used to retool or redevelop auto factories.

Brown has fought for funds that benefit communities lacking adequate financial resources in the past. In April, Brown announced $55 million in funding for community development financial institutions, which are instrumental in providing access to affordable credit, capital, and financial services in underserved communities.

Source: Senator Sherrod Brown