Industrial Revolution Once reserved for large corporations, Industrial Development Bonds are now a source of growth capital for entrepreneurs.

Jim Middlebrook, the founder and president of VortechEngineering, was feeling the squeeze of success. After founding hisOxnard, California, company in 1990 to develop performance partsand accessories for the automotive aftermarket, by 1997, he'drevved up sales to more than $7 million.

But finding growth capital was still a problem. With thegovernment taking a large portion of a company's earnings rightoff the top and tooling costing a pretty penny as well, Middlebrooksays, "In the end, there's not a lot left to make thecompany grow."

Middlebrook knew he needed growth capital to expand in hisexisting market and enter the marine and industrial markets, but heavoided the usual sources, such as venture capitalists and angelinvestors. "They want too much involvement or too muchequity--or both," says Middlebrook.