The City Council approved the first steps Tuesday to secure an $8.4 million Industrial Development Bond (IDB) for Redbarn, a west Long Beach manufacturer of pet food.  Redbarn will use the IDB to finance an expansion that will allow it to add jobs and increase the City’s manufacturing tax base.

The financing will allow Redbarn to add 50 jobs along with a 55,000-square-foot expansion.

“We’re excited about the IDB and expanding our facilities,” said Howard Blaxam, Co-President/CEO of Redbarn.  “The new building would give us lots of efficiency, and the lower interest rate of an IDB makes the deal work for us.”

IDBs are financing instruments created by Congress to encourage manufacturing. Because IDBs are tax exempt, they offer very advantageous interest rates – currently several points below the prime rate.

“IDBs are terrific vehicles to finance acquisitions, expansions and equipment purchases for manufacturers,” said Robert Swayze, manager of Economic Development for the City. “We are optimistic that other Long Beach manufacturing firms can make use of the IDB program. It’s another financing option we can offer to Long Beach firms, or firms that move to Long Beach.”