Grant funding and tax credits are among the most sought after incentives of new and expanding businesses. JobsOhio and the City of Painesville have programs in place offering these benefits to encourage business growth. These programs, of varying focus, are typically tied to job creation and new capital investment in fixed assets.
- Jobs Ohio Economic Development Grant - provided for eligible projects in the State of Ohio, grant decisions are based on job creation, additional payroll, fixed-asset investment commitment, project return on investment and project location.
- 629 Roadwork Development - 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. Project must create or retain jobs.
- 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% of the federal minimum wage.
- JobsOhio Revitalization Program - focused on helping revitalize sites in preparation for end-users that support future job creation opportunities for Ohioans. Program available to both public and private entities seeking to cleanup and redevelop sites across Ohio.
- 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.
- R&D Investment Tax Credit - provides a non-refundable tax credit up to 7% for qualified research and development expenses. Qualifying expenses include in-house research expenses and contracted research expenses.
- PACE Bonds - Property Assessed Clean Energy bonds are part of a federal initiative to encourage programs that allow for property-based financing to fund alternative energy and energy efficiency projects.
- Storefront Improvement Grants - Via Painesville's Economic Development Office, up to $20,000 grant can be used for on-going storefront improvements. As of January 2021, this program is currently not available.
The Lake County Enterprise Zone Program provides tax incentives for industrial projects that create jobs in Lake County and invest in real property and/or personal property. Tax exemptions on new real and/or personal property investments of up to 75% for 10 years are available. The final Enterprise Zone Agreement is a contract between the community and the company and must be executed prior to the project beginning.
Established businesses and entrepreneurs alike must have access to sufficient capital in order to operate and grow. Obtaining the financing needed in a risk adverse lending environment can often pose a challenge. Fortunately there are numerous institutions with tools and resources to assist the business community in acquiring these funds:
- Revolving Loan Funds - seeks to promote business start-up and expansion in Lake County by creating and/or retaining employment for low to moderate income persons
- Tax Increment Financing - Fixed Rate Tax Increment Financing (TIF) is used to finance infrastructure needed for a project and for which there is a common public good. Qualifying public works include streets, parking, water and utilities.
- 166 Direct Loan - provides loans for land and building acquisition, construction, expansion or renovation for eligible businesses, providing low-interest loans up to 40% not to exceed $1.5 million
- Innovation Ohio Loan - assists existing Ohio companies in developing next-generation products and services within the state's Industry Sectors up to $1.5 million
- Ohio Enterprise Bond Fund - provides revenue bond financing through an S&P rated fund, whereby proceeds from the sale of bonds are loaned to companied for fixed-rate, long-term capital asset financing
- Research & Development Investment Loan Fund - provides loan financing up to $5 million for projects engaging in research and development activity
- Basic 7(a) Loan Program - can be used for working capital, equipment, furniture, land and building, leasehold improvements and debt refinancing
- 504 Loan Program - The SBA's loan program offers small businesses another avenue for financing while promoting business growth and job creation
- Business & Industry Guarantee Loan - purpose is to improve the economic and environmental climate in rural communities
- Rural Economic Development Loan & Grant - USDA provides 0 interest loans to local utilities which they pass through to local businesses for projects that will create and retain employment
- Rural Energy for America - work with local lenders who in turn can apply to USDA for a loan guarantee up to 85% of the loan amount
- Rural Business Investment - the Rural Business Investment Company (RBIC) use the equity raised in capitalizing their fund to make equity and equity-like investments
- PLEDGE Linked Deposit Low-Interest Loan Program – the City assists new businesses within city limits with business loans at up to 3% below the conventional loan rate with the program’s participating banks. Uses include property or business acquisition, fixed assets, working capital, receivables financing, environmental cleanup and in some cases, retail operations and the acquisition of investment property
- Port Authority Financing - Port Authority financing provides fixed rate/bond fund and conduit/non-bond fund financing arrangements. The Port Authority’s public-private partnerships can provide financing tailored to each project’s needs. It issues tax-exempt industrial revenue bonds underwritten by a commercial lender’s letter of credit. The borrower is responsible for service on the incurred debt. The Port Authority Fixed-Rate Bond Fund offers long-term, fixed-interest-rate financing for qualified industrial, commercial and public projects.
Workforce Training Assistance
To take advantage of growth opportunities employers are being called upon to increase their training efforts in order to cultivate the skills and talent they need to succeed. As a result, access to training dollars and resources have become more sought after. There are numerous local, regional and state entities offering workforce training assistance:
- Ohio Training Grant - provides assistance to businesses that have been previously awarded a grant by the State of Ohio
- On the Job Training - a federally funded program that helps employers hire and train individuals for long-term employment working through the OhioMeansJobs Center
- Incumbent Workforce Voucher Program - reimburses employers up to 50% of eligible training costs, up to $4,000 per employees, in the State of Ohio
- Foreign Labor Certification Program - helps Ohio employers hire temporary foreign workers for one year if U.S. workers are not available
- Rapid Response Services - a proactive and flexible program provides layoff aversion services to employers, funds special projects and helps workers affected by mass layoffs
- Work Opportunity Tax Credit - this program gives eligible Ohio employers a federal tax credit for hiring individuals from 9 target groups of disadvantaged job seekers