The Michigan Economic Development Corp. recently announced that, through the Private Activity Bond Program, a $4 million allocation has been approved to help finance the expansion of Livonia Tool Inc. in Litchfield, in Hillsdale County.

The bond, issued by the Michigan Strategic Fund (MSF), will enable acquisition of land and an existing approximately 50,000 square foot manufacturing facility, rehabilitation and renovation of the facility and acquisition and installation of machinery, equipment, furniture and fixtures in the facility at 190 Simpson Drive.

The real estate portion of the project will be owned by Livonia Tool Properties LLC, a Michigan limited liability corporation, and leased to Livonia Tool, a Michigan corporation, the owner of the equipment portion and operator of the entire project in the manufacture of parts for the material-handling/material conveyance industry.

Private activity bonds are issued to finance projects for manufacturers and certain nonprofit corporations. The MSF acts as an intermediary between a borrowing company and lending party to lessen costs of borrowing. Interest paid to state-issued bond buyers is exempt from federal, state and local taxes.

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