Investment Incentive Programs

CITY OF ELYRIA INCENTIVES

 
I.   ENERGY CONSERVATION LOAN FUND
The City of Elyria established the Alternative Energy and Energy Conservation Loan Fund to promote alternative energy and energy conservation businesses and jobs with City limits.
Loans of $25,000 to $125,000 for business start-ups and/or expansions for terms up to 5 years and an interest rate equal to five-year Treasury rate plus 2%.
II.  ENTERPRISE ZONE PROGRAM
Elyria’s Enterprise Zones are designated areas of land in which businesses can receive property tax incentives in the form of tax exemptions on eligible new investments. A business must make a substantial investment in either real or personal property in order to benefit from the program.
III.  THE ELYRIA GROWTH OPPORTUNITY FUND                      


The Elyria Growth Opportunity Fund is designed to assist small businesses (for-profit) with financing the challenges of growth.  The Fund will assist small businesses seeking to expand within the revitalization area of downtown Elyria (see attached map).  The fund provides financing for working capital, machinery and equipment as well as for code compliance (exterior) and/or for facade improvements.  Funding for work on a building's exterior must get approval from the Ohio Historical Preservation Office prior to project commencement.  The entire project must be approved not only the part being funded by this loan.  Ventures must employ individuals from low to moderate income households (see Income limits chart) except if the loan is for external renovations or code compliance.  Where employment is required, one job must be created for every $35,000 borrowed.   Contact the Small Business Development Center at Lorain County Community College for application forms and additional assistance at (440) 366-4217.
 
IV.  COMMUNITY REINVESTMENT AREA PROGRAM
 

The City of Elyria has designated areas of land in which property owners can receive a direct tax exemption that benefits property owners who renovate existing or construct new buildings.


V.   JOB CREATION OPPORTUNITY INCENTIVE


The City of Elyria has established a Job Creation Opportunity Incentive program as a financial stimulus to eligible businesses to establish operations within the City of Elyria and to create new jobs. The City may offer an eligible company a cash rebate based on a percentage of annual employee payroll withholding and/or corporate net income taxes new to the City.
 

 

LORAIN COUNTY ECONOMIC DEVELOPMENT PROGRAMS


 
 
PURPOSE:Provides loans to businesses who  use recyclables.
ELIGIBLE APPLICANTS:Operating for-profit industrial or commercial businesses
FINANCE STRUCTURE:Varies from loan to loan
FINANCING AMOUNT:
Maximum-$150,000
The total loan amount cannot exceed 75% of  total project cost
TERMS:Term may not exceed 10 years
INTEREST RATE:Prime less 3% based on prime at time of closing; no less than 3.25% fixed

SMALL BUSINESS DEVELOPMENT CENTER ASSISTANCE ("SBDC")
 

STATE OF OHIO LOAND AND GRANT PROGRAMS

http://jobs-ohio.com/images/JobsOhioGrowthFundGuidelines_2.pdfJobsOhio Growth Fund: JobsOhio Growth Fund - Provides capital for expansion projects to companies that have limited access to capital and funding from conventional, private sources of financing. JobsOhio will consider loans to companies that are in the growth, established or expansion stage, and that have generated revenues through a proven business plan.  Decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.

JobsOhio Workforce Grant: Created to promote economic development, business expansion, and job creation by providing funding for the improvement of worker skills and abilities in the State of Ohio. Grant decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.

The JobsOhio Site Revitalization Loan and Grant Fund: The JobsOhio Site Revitalization Loan and Grant Fund was created to support the acceleration of redeveloping sites in Ohio. Primary focus will be placed on projects where the cost of the redevelopment and remediation is more than the value of the land and a site cannot be competitively developed in the current marketplace. Priority will be placed on projects that support near term job creation opportunities.

JobsOhio Economic Development Grant: The JobsOhio Economic Development Grant was created to promote economic development, business expansion, and job creation by providing funding for eligible projects in the State of Ohio. Grant decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location. 
 

Ohio Incumbent Workforce Training Voucher Program - This employer-driven program is targeted to provide direct financial assistance to train workers and improve the economic competitiveness of Ohio's employers. The program is designed to offset a portion of the employer's costs to upgrade the skills of its incumbent workforce and will provide reimbursement to eligible employers for specific training costs accrued during training. The program's funding will be used in conjunction with private contributions to fund skill-upgrade training. Eligible employers must demonstrate that by receiving funding assistance through the Ohio Incumbent Workforce Training Voucher Program their business will not only obtain a skilled workforce but will improve their company processes and competitiveness.
 
Tax Credits and Abatements

Job Creation Tax Credit - A refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150 percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s commercial activity tax liability for any given year, the difference is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.

Community Reinvestment Areas - Provide companies locating in a designated Community Reinvestment Area an exemption of up to 100 percent of improvement value for up to 15 years on real property taxes. To be eligible, a company must make an agreement with the local community prior to going forward with the qualifying project.

Ohio Enterprise Zone Program - Provides real property tax incentives for businesses that expand or relocate in Ohio. To establish an Enterprise Zone, a municipality or county must apply to the Director of Development for certification. To secure benefits, businesses must apply to the local community. Certain qualifying businesses may be eligible for additional benefits.

Financing

Research and Development Investment Loan - Provides loan financing between $500,000 and $5 million for projects primarily engaging in research and development activity. Rates are fixed (at- or below-market rates) with other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non- refundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.

Research and Development Investment Tax Credit - Provides a non-refundable tax credit up to seven percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses, and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years.

Ohio Enterprise Bond Fund - Provides revenue bond financing through an S&P rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding. Loan terms range between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.

Innovation Ohio Loan Fund - Provides loans for acquisition, construction, and related capital costs of technology, facilities, and equipment purchases. The fund was created to assist existing Ohio companies in developing next-generation products and services within the state’s Industry Sectors up to 75 percent ranging from $500,000 to $1.5 million.

166 Direct Loan - Provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. The program provides low-interest loans up to 40 percent not to exceed $1.5 million.

Regional 166 Direct Loan - Provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Regional economic development agencies administer the program. It provides low-interest loans up to 75 percent collateral value, not to exceed $500,000.
 
Roadwork Development - Funds are available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, research and development, high technology, corporate headquarters, and distribution activity. Projects must create or retain jobs. Grants are reimbursable and provided to a local jurisdiction and require local participation.
 
Clean Ohio Revitalization Fund - A key financial component for helping a community build economic capacity by providing funding for brownfield redevelopment. Brownfield redevelopment allows a community to reclaim and improve its lands, making property viable for new development. Grants are made through a competitive process that includes local evaluation.
 
Brownfield Revolving Loan Fund - Offers below market rate loans to assist with the remediation of a brownfield property to return the property to a productive economic use in the community.
 
Volume Cap - Provides a federal tax benefit by allowing eligible issuers to issue tax exempt Private Activity Bonds up to a state limit known as the “Volume Cap.” The State of Ohio’s allocation of Volume Cap is determined annually by the Internal Revenue Service on a per capita basis, and may be used for projects consisting of multi-family housing, single-family housing, exempt facilities, manufacturing, and student loan bonds.