Space Florida is committed to growing the aerospace industry in the Sunshine State. To do this, Space Florida uses a unique toolbox given to it by the governor and the Florida legislature. Inside the box are many creative financial enticements and solutions that can help businesses decide to locate or grow in Florida.
What is the toolbox and what’s inside?
Space Florida is an independent special district of the state, similar to an airport or seaport authority. It’s a politically created corporation, capable of earning profit, borrowing money and partnering with commercial business, as well as federal, state and local governments. This makes Space Florida more flexible than most state entities when it comes to acting as an industry partner or an agent of economic development.
One of the most frequently used tools in the Space Florida toolbox is called conduit financing: a way to get quick funding to pay for property or infrastructure that is repaid as a long-term loan or lease. This allows a company to access cash quickly and defer payment while using existing capital more strategically.
Space Florida can provide financial efficiencies for business by constructing deals that lower overhead and operating cost on an annual basis. One way to this is with a synthetic lease: a kind of operating lease structured in such a way that it’s not recorded as an asset or liability on a balance sheet. Instead, it’s an expense. The biggest benefit to a synthetic lease is it enables businesses to defer large expenditures or spread them out over multiple years.
Space Florida has the ability to secure property and rights to infrastructure from federal, state and local governments for commercial use on behalf of the business. Space Florida can conduct business-to-business deals for property on commercial terms, freeing businesses from the usual insurance, safety and labor constraints associated with the use of government facilities. We can create commercial islands within otherwise restricted areas.
Space Florida can use one or a combination of all the instruments it has at its disposal to build a lasting relationship with businesses and help bolster a company’s bottom line. By making use of these tools, your company has a genuine opportunity to grow its business to its full potential, finding a lasting home in Florida.