Municipal Wage Tax Credits
Utilized to attract, retain and expand businesses. Credit paid based on actual new payroll and income tax generated to the municipality. Municipal generally credits range from 25% to 50% of municipal tax rate.
Tax Increment Financing (TIF)
An economic development financing tool available to local governments in Ohio to finance public improvements and in certain circumstances residential and commercial improvements.
TIF financing utilizes Payments In Lieu of Taxes (PILOTs) generated from the increased assessed value of any improvement to real property (the "tax increment"). PILOTs support public improvement projects including infrastructure, environmental remediation, land acquisition, and demolition. TIFs may also be utilized in designated incentive TIF districts wherein proceeds are eligible to support residential and commercial improvements as well as public improvement.
Enterprise Zone Tax Abatement
Development tool that provides real property tax exemptions to businesses making investments in Ohio. Enterprise Zones are designated areas of land in which businesses can receive tax incentives in the form of exemptions on eligible new investment.
Economic Development Loan Programs
Provides businesses with long term, fixed-rate financing at interest rates generally lower than conventional financing. Loans can be used as gap financing for the acquisition of land, buildings, machinery and equipment as well as for new construction, renovation, expansion and/or conversion of facilities.
Small Business Association (SBA) Loans
A number of SBA loan programs are available to for-profit businesses of all sizes and industries. SBA programs include but are not limited to Community Advantage Loan Programs, SBA 7(a) loans, SBA 504 Refinancing Loans and more. Generally, funds can be used for any business purpose. The borrower begins the process at any bank and negotiates rate and term. Maximum business size for SBA loans is determined by annual sales or number of employees; rates and term vary.
Grow Cuyahoga County Fund
This is a term loan variant of the SBA 7(a) program. In conjunction with the County, National Development Council operates the fund, which can typically loan from $100,000 to $2 million; the loan can cover 90 percent of the project, with the balance owner's equity. Loan proceeds can be for any business purpose, including leasehold improvements. Rates and terms vary.