Introduction

Local Development Organizations

FEDERAL PROGRAMS

SBA International

SBA Guaranty Loans - 7(a)

Business & Industry Guaranteed Loans

STATE PROGRAMS

Ohio Job Creation Tax Credit

Export Tax Credit

Enterprise Bond Program

Community Development Corporation Program (CDC)

Direct Loan (166 Program)

Economic Development Program

Ohio Mini-Loan Program

Linked Deposit Program for Small Business

Agri Linked Deposit Program

Ohio M&E Investment Tax Credit

REGIONAL PROGRAMS

SBA 504 Loan Program

166 Regional Loan Program

LOCAL PROGRAMS

Industrial Revenue Bonds

Tax Increment Financing Programs

Fairfield County EDA Revolving Loan Fund Program

CDBG Revolving Loan Fund Program.

Fairfield County Enterprise Zone Program

Community Reinvestment Area

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Utilizing public financing assistance in the creation, retention or expansion of a business venture is a detailed process, however, the benefits of lower interest rates and/or longer terms are encouraging. When considering one of the programs listed in this booklet, keep in mind that most require a private lender's participation. In addition, the majority of public financing programs require the following information be provided to the governmental agency and private lender:

1)    A Business Plan - a written plan for the project which discusses the product or service, marketing strategy,
        management, personnel, purpose of the loan, etc.
2)    Capacity to repay debt - Cash flow and income statements for the current periods as well as projected over the
        next three (3) years. Projections should be detailed monthly for the first year, and quarterly thereafter.
3)    Projected amount of funding requirements - The projection should state the amount of funds needed and the    

        reason for the need. Project costs should be itemized as to the amount needed for fixed assets, receivables or

        inventories, and other related costs. Other sources of financing should be listed as well as when the funds will be

        needed.
4)    A Balance sheet - This would include a balance sheet for the current year as well as projected balance sheets for a
        three year period.
5)    A list of collateral - A statement of assets which may be pledged as security for the loan.
6)    Personal financial statements.

For more information and assistance, please contact:

Carol Mackey

County Extension Agent

Community Economic Development

Ohio State University Extension (740) 653-5419, ext 21

http://fairfield.osu.edu

Canal Winchester

Bruce Langner, Development Director
36 South High Street
Canal Winchester, Ohio  43110
(614) 837-1894

City of Lancaster Development Department
Franklin Melick, Director
111 South Broad Street
Suite 217
Lancaster, Ohio  43130
(740) 687-6663

City of Pickerington
Susan Crotty, Economic Development Director
100 Lockville Road
Pickerington, Ohio  43147
(614) 837-3974

Fairfield County Regional Planning Commission
Brooks Davis, Director
Courthouse
210 E. Main Street
Lancaster, Ohio  43130
(740) 687-7110
 
Lancaster Fairfield County Chamber of Commerce
Community Improvement Corporation
David Lieser, Executive Director
P.O. Box 2450
Lancaster, Ohio  43130
(740) 653-8251
 
Ohio State University Extension - Fairfield County
Carol Mackey, CED
831 College Avenue, Suite D
Lancaster, Ohio  43130-1081
(740) 653-5419, ext 21
 
Pickerington Area Chamber of Commerce/CIC
Kathy Lowrey, Executive Director
13 W. Columbus Street
Pickerington, Ohio  43147
(614) 837-1958
 

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FEDERAL PROGRAMS

SBA International Program

BORROWER

• Must be an SBA eligible business with, or planning, export activities

MAXIMUM

• Up to $1 million for facilities or equipment; up to $250,000 for working capital

USE OF PROCEEDS

• Purchase or upgrade of facilities or equipment; working capital

RATE/TERMS

• Fixed monthly; approximately 1% above U.S. Treasury bonds
• 10 years for machinery & equipment; 20 years for real estate

COLLATERAL

• requires a personal guarantee

MISCELLANEOUS

• 10% owner cash equity
• Prevailing wage applies to construction/remodeling projects
• Job creation of 1 FTE/$35,000

CONTACT

U.S. Small Business Administration

Federal Building

85 Marconi Blvd., Room 512

Columbus, OH 43215

(614) 469-6860

SBA Guaranty Loans - 7(a)

BORROWER

• Must be a small business owner who is organized for-profit

MAXIMUM

• Up to $155,000 guaranteed at 90%
• Up to $750,000 guaranteed at 85%

USE OF PROCEEDS

• Working capital, supplies and inventory
• Purchase of fixed assets including equipment and real estate

RATE/TERMS

• Negotiated rate up to prime plus 2 3/4%; may be fixed or variable
• 5 to 7 years for working capital;
• up to 25 years for real estate
• 10 years machinery & equipment

MISCELLANEOUS

• Application is submitted through a private lender
• Must show repayment ability from cash flow of the business
• Requires personal and corporate guaranties
• Start-ups must have a 20% to 30% equity investment; more is required on higher risk business

CONTACT

U.S. Small Business Administration

Federal Building

85 Marconi Blvd., Room 512

Columbus, OH 43215

(614) 469-6860

 

Business & Industry Guaranteed Loan

BORROWER

• Individual, sole proprietorship, partnership, corporation, cooperative, trust or other legal entity organized and operated on a profit or non-profit basis, a municipality, county, or other political subdivision of a State

MAXIMUM

• Maximum of $10 million ($25 million under limited circumstances) and preference given to loans of $5 million and under. Loans under $500,000 should usually be referred to the SBA. Interest rates (fixed or variable) and terms (maximum 30 years) are negotiable between the lender and borrower subject to approval by Rural Development. Personal guarantees are required.

• Guaranteed at up to 80%; a one-time guarantee fee, equal to 2% of the guaranteed portion of the loan, is due at the time the guarantee is issued.

USE OF PROCEEDS

• Rural Development can guarantee quality loans made by private lenders to business and industry involving manufacturing, wholesale, retail, and services. Projects must involve the creation and/or savings of jobs. The purpose need not be agriculturally related. Loan purposes can include real estate, machinery and equipment, or term working capital.

CONTACT

USDA/Rural Development

Federal Building, Room 507

200 N. High Street

Columbus, OH 43215

(614) 469-5400

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STATE PROGRAMS

Ohio Job Creation Tax Credit

PROJECT

• State and municipal tax incentives for businesses that expand or locate in Ohio. State guidelines regulate type of business and projects eligible for this incentive.

ELIGIBILITY

• A five-member authority determines the eligibility and terms; businesses must agree to create at least 25 new, full-time jobs within 3 years of operation; the average wage of all employees must be at least 150% of the current federal minimum wage; the business must demonstrate to the state that the tax credit is a major factor in its decision to go forward with the project; the local community must also provide financial support for the project.

RATE/TERMS

• A business can receive a refundable tax credit against its corporate franchise/income tax based on the state income tax withheld on new, full-time employees; the amount of the tax credit can be up to 75% for up to 10 years; the tax credit can exceed 75% only upon recommendation of the Director (extraordinary circumstance that merits an exception); approved projects generally range between 50% to 60% for 5 to 10 years. Municipalities can provide a similar arrangement with their local employee income taxes.

MISCELLANEOUS

• Substantial state and municipal tax reductions, which minimize capital expenditure to encourage business expansions and locations in Ohio.

CONTACT

Office of Tax Incentives

Ohio Department of Development

(614) 466-4551

Export Tax Credit

PROJECT

• A non-refundable franchise tax credit for corporate or individual taxpayers who increase export sales, if they also increase either Ohio payroll or Ohio capital expenditures.

RATE/TERMS

• The credit is based on the average increase in export sales during the two years prior to the year in which the credit is claimed. Export sales are defined as those sales that qualify for special Foreign Sales Corporation (FSC) federal tax treatment.

ELIGIBILITY

• Generally, a business is able to claim a 10% credit of pre-tax profit from increase in export sales, as long as either Ohio payroll or property values increase by 10% over the previous 3 years. If increase is less than 10%, the credit is proportionately reduced.

CONTACT

Special Projects Manager for Governor's Export Initiative,

Ohio Department of Development (614) 466-5017

or

Ohio Department of Taxation (614) 846-6712 (personal taxpayers)

(614) 433-7617 (corporate taxpayers).

 

Enterprise Bond Program

BORROWER

• Industrial user (Manufacturing, distribution or corporate headquarters)

MAXIMUM

• $10 million up to 90% of eligible fixed assets

MINIMUM

$1 million

USE OF PROCEEDS

• Construction, expansion or renovation of a building
• Purchase of new machinery and equipment
• Purchase of existing building

RATE/TERMS

• Averages 5% if tax exempt; 7% if taxable; rates are fixed
• Maximum 20 years on buildings
• Maximum 10 years on equipment

MISCELLANEOUS

• Must create or retain 1 job for every $75,000
• Ohio prevailing wage rates apply
• 10% debt reserve required
• Application fee of $1500 required
• 2% - 3% issuance costs
• Only manufacturing projects are eligible for tax-exempt bonds

CONTACT

Ohio Department of Development

Business Development Office

77 S. High Street

Columbus, OH 43266-0101

(614) 466-4551 or 1-800-848-1300

 

Community Development Corporation Program (CDC)

BORROWER

• Must be a community-based organization with a development track record
• Must have been incorporated as a private, non-profit organization for at least three (3) years
• Must have 501 (C) 3 status with the IRS

MAXIMUM

• Up to $50,000

USE OF PROCEEDS

• Housing, economic development or energy conservation projects
• At least 50% must be used for project implementations; up to 50% can be used for project development costs.

RATE/TERMS

• Must have 2:1 ratio of other funds

MISCELLANEOUS

• Grants awarded on a competitive basis

CONTACT

Office of Housing and Community Partnerships

77 S. High Street, 24th Floor

Columbus, OH 43266-0101

(614) 466-6815

 

Direct Loan (166 PROGRAM)

BORROWER

• On-going, owner-occupied, manufacturing,distribution, corporate headquarters

MAXIMUM

• Up to 30% of total eligible fixed assets; $1 million maximum/$350,000 minimum

USE OF PROCEEDS

• Acquire land and building; new construction; renovate existing building; acquire new and/or used machinery & equipment; and project related soft costs

RATE/TERMS

• Currently fixed at 5% plus .25% annual servicing fee
• Up to 15 years for real estate; up to 10 years for machinery and equipment

MISCELLANEOUS

• 10% owner cash equity required
• Bank participation required - the 166 program is take-out financing
• Must create one job for every $15,000 ($35,000 in distressed areas) received; jobs must be created within 3 years after project completion.
• Ohio prevailing wage rates apply to construction, renovation and installation of machinery and equipment projects
• $1,500 non-refundable application fee and 2% non-refundable commitment fee
• Personal guarantee(s) of owner(s); corporate guarantee; shared collateral position with bank; key person life insurance; and additional covenants

CONTACT

Ohio Department of Development

Business Development Office
(614) 466-4551 or 1-800-848-1300
 

Economic Development Program

GOAL

• The principal goal of the CDBG Economic Development Program is to create and retain permanent private-sector job opportunities, principally for low-and moderate-income persons, through the expansion and retention of business and industry in Ohio.

BORROWER

• Cities and counties; counties must apply on behalf of villages and townships, they may also apply on behalf of cities within their jurisdiction. The City of Lancaster is not eligible for this program.

MAXIMUM

• $500,000 maximum for direct loans, $400,000 maximum for off-site infrastructure improvements

USE OF PROCEEDS

• Fixed assets including land, building, machinery and equipment, as well as the infrastructure investment directly related to business or industrial development.

RATE/TERMS

• Minimum of 4%; based on the useful life of asset(s) financed: machinery & equipment, 5-10 years; real estate, 15-20 years.

MISCELLANEOUS

• Must create and/or retain 5 full-time, permanent jobs in the private sector; at least 51% of the jobs created/retained must be taken by or made available to LMI households
• the CDBG cost per job must not exceed $25,000 for direct loans or $10,000 for off-site infrastructure improvements. To be competitive, the applicant must keep this ratio as low as possible.
• borrower/business is required to contribute 5% cash toward the project's total fixed asset cost
• at least 15% of a project's fixed asset cost must be privately financed
• Ineligible activities include financing of existing debt, working capital, non-capital equipment, and inventory. Assistance to businesses which relocate from one area of Ohio to another is prohibited. Financing of speculative projects is not allowed. Speculative buildings include those that do not have tenant commitments for at least 50% of the floor space or where project resources may not be sufficient to cover expenses

CONTACT

Carol Mackey, Loan Administrator

Fairfield County RLF

OSU Extension

(740) 653-5419, ext 21

or

Office of Housing and Community Partnerships

Ohio Department of Development

(614) 466-2285

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Ohio Mini-Loan Program

BORROWER

• Small, for-profit business with 25 or fewer employees

MAXIMUM

• $100,000 ($10,000 minimum)

USE OF PROCEEDS

• Up to a 45% guarantee of the purchase of land, building, machinery or equipment, renovations and lease improvements

RATE/TERMS

• Blend of 5.5% for guarantee portion of loan and bank's prevailing interest rate for unguaranteed portion of the loan.
• Maximum of 10 years

MISCELLANEOUS

• Cannot be used with other state financed direct loans or guarantees: may be used with Linked Deposit program
• $10,000 to $15,000 per job (created or retained)
• Process: 1) Business owner applies to bank. 2) Lender submits Request for Guarantee form to the state with bank's commitment letter, borrower's financial statements and project information. 3) Applications are reviewed and approved by the Minority Development Financing Advisory Board which meets the 3rd Thursday of the month. 4) Controlling Board President reviews and signs off after seven days. 5) Commitment letter issued, closing process begins. 6) 45- 60 days from time of application to closing.

CONTACT

Minority Development Financing

Ohio Department of Development

1-800-848-1300 or ( 614) 644-7708

 

LINKED DEPOSIT PROGRAM FOR SMALL BUSINESS

THE PROGRAM:

The Treasury's Linked Deposit Program for Small Business has assisted thousands of Ohio businesses across all 88 counties since its inception in 1983. The program's purpose is simple: to help preserve or create jobs for Ohioans.

Ohio law authorizes the State Treasurer to place up to 12 percent of the state's investment portfolio in reduced-rate investments at local lending institutions, which, in turn, lend the funds to qualifying small businesses at below-market rates.

Well into its second decade of operation, the Linked Deposit program remains one of Ohio's most popular and widely used economic development tools.

 ELIGIBILITY:

In order to qualify for the Linked Deposit Program, the small business must meet the following requirements:
 

• Be organized for profit;
• Maintain offices and operating facilities exclusively in Ohio; and,
• Employ fewer than 150 people at the time of application, the majority of whom must be Ohio residents.

OTHER PROGRAM GUIDELINES

In addition to the above requirements, the following guidelines must be followed in the application process:
 

• A small business owner should contact a lending institution that is a state depository and obtain a loan as they normally would;
• The applicant should document the number of jobs that will be saved or created;
• Once approved by the lending institution, the application is sent to the Treasurer of State's office for approval;
• The Treasurer's office evaluates applications on a first-come, first-served basis;
• Eligibility is determined by a jobs-to-dollars ration - that is, one full-time-equivalent job must be created or saved for every $25,000 requested;
• Once approved by the lender, the application is sent to the Treasurer of State's office for approval. If approved by the Treasurer's Office, the Treasury purchases a certificate of deposit with the lender in the amount of the request;
• The Treasury agrees to accept a reduced interest rate on the certificate of deposit if the lending institution agrees to pass on the same reduced interest rate to the borrower;

Applications for the Agri-Linked Deposit program are available at eligible lending institutions. For more information about this or other Treasury programs, please call the State Treasurer's office toll-free at 1-800-228-1102, or visit our website at www.treasurer.state.oh.us.

AGRI-LINKED DEPOSIT PROGRAM

THE PROGRAM: 

Modeled after the successful Linked Deposit program for small business, a separate program for agriculture was created, offering reduced-rate financing to Ohio farmers.  The plan was developed to meet the high cost of borrowing funds which burdens many Ohio farmers.

The program was created in 1985 with emergency legislation and had a sunset clause of two years.  In 1987, the Ohio General Assembly passed legislation making Agri-Linked Deposit a permanent program.

Each year $100 million is committed to Agri-Link Deposits.  To date, a total of $1.6 billion has assisted Ohio's farmers through more than 23,000 Agri-Linked Deposits approvals.

A farmer must document that the benefits of the program will materially contribute to the farm's ability to meet planting deadlines. Requests for operating costs, such as seed, feed, fertilizer, and fuel, will receive a priority.

 ELIGIBILITY:

In order to qualify for the Agricultural Linked Deposit program, a farmer must meet the following guidelines:
 

• The farm must be headquartered in Ohio;
• Must maintain 51% of all land and/or operating facilities in Ohio;
• Must be organized for profit;
• Must complete the required application;
• Must apply through an eligible lender by the specified deadline.

Other Program Guidelines:

A farmer should contact an office of the Farm Credit System or a lending institution that is a state depository;
 

• The applicant should apply for an annual operating loan and indicate interest in receiving a reduced-rate through the Agri-Link program;
• The maximum allowable dollar amount is $100,000 per applicant; The applicant should explain on the application the need for the reduced interest rate;
• If the loan is approved, the Treasury purchases a reduced-rate certificate of deposit with that lending institution in the amount requested, provided the latter agrees to lend such funds at a reduced rate to the borrower;
• The Linked Deposit is renewable after two years.

Applications for the Linked Deposit program are available at eligible lending institutions. For more information about this or other Treasury programs, please call the State Treasurer's office toll-free at 1-800-228-1102, or visit our website at www.treasurer.state.oh.us.
 

Ohio Manufacturing Machinery & Equipment Investment Tax Credit

GOAL

• The Manufacturing Machinery & Equipment Investment Tax Credit was created to encourage the expansion of existing operations by upgrading machinery with new technology. It offers a non-refundable corporate franchise or state income tax credit for a manufacturer that purchased new machinery and equipment (M&E). The credit only applies to machinery and equipment that is located in Ohio and is used in the production or assembly of manufactured goods.

ELIGIBILITY

• Available to any Ohio manufacturing operation; corporation, partnership, limited liability company, or proprietorship.
• New investment must exceed the company's three-year annual average investment in M&E. If a manufacturing operation has multiple facilities, the company must consider the three-year annual average investment of all the facilities located in the same county.

INCENTIVES

• A manufacturer may receive 7.5% tax credit on the increase of the investment which is in excess of the three-year annual average investment on M&E.
• A tax credit of 13.5% is available to manufacturers making investments in "Eligible Investment Areas." Annually, the Ohio Department of Development (ODOD) identifies eligible areas which must satisfy the definition of one of the following: distressed area, labor surplus area, inner city area, or situational distress area.
• The purchase of M&E must be made between July 1, 1995 and December 31, 2005.  Installation of machinery can be made no later than December 31, 2006. The total value of the tax credit is divided equally over 7 years and the manufacturer is permitted to carry forward any unused tax credit for up to 3 years. If the total value of the tax credit exceeds $1 million, then the manufacturer must demonstrate that its total value of M&E in Ohio has not decreased in the previous twelve months. In such a case, a waiver may be sought from the Director of ODOD. Relocation of equipment within the state is discouraged.


CONTACT:
 

Office of Tax Incentives

Ohio Department of Development

P.O. Box 1001

Columbus, OH 43216-1001

(800) 848-1300

 

REGIONAL PROGRAMS

SBA 504 Loan Program

BORROWER

• Small or medium for-profit business

MAXIMUM

• Up to $1,000,000 or 40% of the project

USE OF PROCEEDS

• Land acquisition and improvements
• Purchase, remodeling, construction of or addition to a building
• Purchase of machinery or equipment

RATE/TERMS

• Fixed, based upon market rates determined by private market sale of debentures;
• 10 years for machinery and equipment; 20 years for real estate

MISCELLANEOUS

• 50% of the project must be funded by non-federal sources; minimum 10% equity investment
• Net operating cash flow must be greater than the debt
• Must have adequate working capital and good management skills
• Debentures issued are guaranteed by the SBA and sold to the private investment market
• One FTE job must be created within two years for each $35,000 awarded

CONTACT

Community Capital Development Corporation

941 Chatham Lane, Suite 207

Columbus, OH 43221

(614) 645-6171

 

166 Regional Loan Program

BORROWER

• Private, for-profit, primarily manufacturing

MAXIMUM

• Up to $350,000 or 40% of project fixed asset costs

USE OF PROCEEDS

• Acquisition of land and building, new construction, renovate existing building, acquire new and/or used machinery & equipment, and project-related soft costs

RATE/TERMS

• Negotiable; will not exceed 2/3 of prime
• Up to 10 yrs. for equipment; 15 yrs. for real estate (equal or less than private lender)

MISCELLANEOUS

• Must create/retain one job for every $35,000 received
• Personal guarantees required; corporate guarantees, shared first mortgage on assets; key person life insurance; and, financial covenants required.
• Prevailing wage must be paid for projects involving construction
• 10% owner cash equity required

CONTACT

Ohio Department of Development

Business Development Office

(614) 466-4551 or 1-800-848-1300

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LOCAL PROGRAMS

Industrial Revenue Bonds

BORROWER

• Tax exempt: manufacturing only. Taxable: manufacturing, commercial or service

MAXIMUM

• Minimum is $1 million; maximum $10 million for tax exempt
• Up to 100% of eligible fixed assets

USE OF PROCEEDS

• Capital facilities; some soft costs

RATE/TERMS

• Floating or fixed; up to 20 years
• Tax exempt; 65% of conventional rate. Taxable: T-bond rate + 1%

MISCELLANEOUS

• Requires a Letter of Credit from a participating bank
• Available in most Ohio counties and cities
• Annual application and processing fee

CONTACT

Lancaster Area CIC

P.O. Box 2450

Lancaster, OH 43130

(740) 653-8251

 

Tax Increment Financing Programs

BUSINESS/PROJECT

• Permits service payments in lieu of real property taxes to be used for finance public infrastructure improvements connected to an improvement project declared to have a "public purpose".

ELIGIBILITY

• Counties, municipalities or townships must, by resolution or ordinance, declare improvements to a parcel of real property located within its jurisdiction to be a public purpose.

RATE/TERMS

• Up to 75% of value or real property taxes can be exempted for up to 10 years. However, an annual service payment in lieu of taxes is required. The payment in lieu of taxes cannot exceed the annual debt service of the notes or bonds used to finance the public infrastructure improvements. The rate and term can be extended up to 100% for up to 30 years with school board approval.

MISCELLANEOUS

• Local legislative authorities use this program at their discretion.
• A business's real property tax can, in effect, be used to finance a public infrastructure improvement that directly benefits its place of operations. See ORC 5709.40-43, 5709.73-75, or 5709.77-81.

CONTACT
        Ohio Department of Development

Office of Business Development

(614) 466-4551 or 1-800-848-1300

 

Fairfield County EDA

Revolving Loan Fund Program

BORROWER

• Loans will be made to private, for-profit and non-profit companies, corporations, and public entities. Eligible companies will include small businesses (200 employees or fewer) engaged in manufacturing, assembly, research and development, wholesale, distribution, and commercial services.

MAXIMUM

• Up to $60,000 per borrower, with a minimum of $10,000

USE OF PROCEEDS

• New building and infrastructure construction
• Purchase of land and buildings
• Plant modernization
• Purchase and installation of equipment and fixtures
• Working capital; working capital will be restricted to 25% of any one loan.

RATE/TERMS

• Interest rate will be no lower than four percentage points below prime, but no less than 4% or the maximum interest rate allowed under state law, whichever is lower
• Based on asset life with a maximum of 10 years for machinery and equipment; 15 year maximum for land and buildings
• Working capital loans will not exceed a five-year term

MISCELLANEOUS

• Equity investment of at least 5% of the total fixed asset cost will be required
• One job must be created or retained within 24 months for every $10,000 of RLF funds received
• The minimum required private sector match is 2:1. In other words, the leverage ratio should be a minimum of $2.00 of private funds to $1.00 of RLF-EDA funds
• Priority for loans will go to those businesses which employ industrial workers in preference to commercial or retail workers
• A maximum of 25% of the portfolio will be loaned to retail businesses
• At least 51% of all new jobs should be directed to the long-term unemployed. Applicants for RLF-EDA funds are expected to make a commitment to hire JTPA eligible persons

CONTACT

Carol Mackey, Loan Administrator

OSU Extension

831 College Ave., Suite D

Lancaster, OH 43130

(740) 653-5419, ext 21

 

CDBG Revolving Loan Fund Program

BORROWER

• Public, private, for-profit or non-profit entities within Fairfield County, but outside the City of Lancaster

MAXIMUM

• Up to 50% of project costs for fixed assets
• Target size is $20-30,000 CDBG funds

USE OF PROCEEDS

• Fixed asset financing, including land, building, machinery and equipment
• Infrastructure investments directly related to the creation, retention or expansion of a business are also eligible

RATE/TERMS

• Negotiated interest, generally 5-7%
• Useful life of machinery and equipment (5-10 years); Real estate loans up to 15 years

MISCELLANEOUS

• One full time equivalent job must be created within 24 months of project completion for every $25,000 received
• 51% of the jobs created/retained must be made available to persons of low or moderate income
• Owner must invest at least 5% cash equity toward the fixed asset cost
• Must document the need for CDBG funds

CONTACT

Carol Mackey, Loan Administrator

OSU Extension

831 College Avenue, Suite D

Lancaster, OH 43130

(740) 653-5419, ext 21

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Fairfield County Enterprise Zone Program

PARTICIPANT

• In order to be eligible for tax exemption on new real estate and/or personal property taxes, a business must ensure that the establishment of a facility or improvement by expansion, renovation, or occupancy shall involve a substantial capital investment and the new jobs will be created.
• No facility which is used primarily for making retail sales shall be eligible for tax exemption under this program.

MAXIMUM

• Municipalities - The maximum level of exemption shall not exceed 75 percent of additional real estate and personal property taxes resulting from the project, for a period not to exceed 10 years.
• Townships - The maximum level of exemption shall not exceed 60 percent of additional real estate and personal property taxes resulting from the project, for a period not to exceed 10 years.

ASSETS COVERED BY ABATEMENT

• Land/building
• Machinery/Equipment
• Inventory

RATE/TERMS

• Negotiated with local officials

MISCELLANEOUS

• A project involving a new business or facility must result in the initial creation of 5 permanent full-time new jobs and a total of 10 permanent full-time jobs within 36 months of project completion.
• For projects involving construction of new facilities total project costs must be at least $150,000.

• For expansion activities, expenditures to add land, building, machinery, equipment, or other materials, except inventory, must equal at least 10% of the market value of the facility prior to such expenditures, as determined for the purpose of local property taxation.
• For renovation of existing facilities, expenditures to alter or repair a facility must equal at least 50% of the market value of the facility prior to such expenditures, as determined for the purpose of local property taxation.
• For occupancy of a vacant facility, expenditures for alteration or repair must equal at least 20% of the market value of the facility prior to such expenditures, as determined for the purpose of local property taxation.
• Businesses have up to 36 months to reach full implementation of employment goals and a phased hiring process may be negotiated as part of the tax exemption agreement.
• A non-refundable application fee of $500.00 shall be paid to the State of Ohio at the time an application for tax exemption is submitted.
• A minimum annual monitoring fee of $500 to a maximum of $2,500 is required

CONTACT

Brooks Davis, Enterprise Zone Manager

Fairfield County Regional Planning Commission

210 E. Main Street

Lancaster, Ohio 43130

(740) 687-7110

 

Community Reinvestment Area

PARTICIPANT

• Abatement may be granted for projects (residential, commercial and industrial) that result in increased property valuation due to new construction or remodeling in designated areas.
• Available within the City of Lancaster

MAXIMUM

• Residential improvement projects totaling $4,000 or more qualify for 100% abatement on the increase in real estate taxes, for a period of 10 years.
• Commercial and industrial improvement projects totaling $5,000 or more qualify for 100% abatement on the increase in real estate taxes, for a period of 12 years.

ASSETS COVERED BY ABATEMENT

• Real property (only on improved portion)

MISCELLANEOUS

• This program functions to provide an incentive for residential, commercial, and industrial development within designated areas.
• There are 6 designated CRA's within the City of Lancaster.

CONTACT

Dave Darfus, Code Administrator

City Engineer's Office

104 E. Main Street

Lancaster, Ohio 43130

(740) 687-6614

OSU Extension embraces human diversity and is committed to ensuring that all educational programs conducted by Ohio State University Extension are available to clientele on a nondiscriminatory basis without regard to race, color, age, gender identity or expression, disability, religion, sexual orientation, national origin, or Vietnam-era veteran status.

 

Keith L. Smith, Associate Vice President for Ag. Admin. and Director, OSU Extension 

TDD No. 800-589-8292 (Ohio Only) or  614-292-1868.

 

Updated:  August 15, 2001

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