The staff at AEDG is able to assist companies looking to locate to the region or existing companies wanting to expand through a variety of programs that include tax abatements, low-interest loans and grant programs.
Allen County has an established Enterprise Zone, which enables companies to seek tax exemptions for new investment. The Enterprise Zone program allows for an agreement between a business and community establishing a tax exemption for a portion of the value of the new property value when the investment includes job creation. The agreement must be finalized before the project begins. The Enterprise Zone guidelines allow for:
Municipalities to offer the following incentives:
Exemption of real and/or personal property assessed values of up to 75% for up to 10 years or an average of 60% over the term of the agreement on new investments in buildings, machinery/equipment and inventory and improvements to existing land and buildings for a specific project.
The Enterprise Zone law permits unincorporated areas to offer the following incentives:
Exemption of real and/or personal property assessed values of up to 60% for up to 10 years or an average of 50% over the term of the agreement on new investments in buildings, machinery/equipment and inventory and improvements to existing land and buildings for a specific project.
Maximum exemption levels may be exceeded with approval by the affected board of education. These approved thresholds may be up to 100 % exemption for up to 15 years.
Community Reinvestment Area
The Ohio Community Reinvestment Area program is an economic development tool that provides real property tax exemptions for property owners who renovate existing or construct new buildings. CRAs are areas of land in which property owners can receive tax incentives for investing in real property improvements. The local legislative authority with jurisdiction over the area determines the size, number and the term of the property exemption. Local municipalities determine the type of development to be supported by the CRA Program, including residential, commercial and/or industrial. The cities of Lima and Delphos and the village of Spencerville have established CRAs.
The D’Arcy Loan Fund is a local funding source for businesses expanding or locating to Allen County. The fund provides low interest loans to assist with Allen County economic development projects. Loan amounts are subject to the availability of funds and should be used as gap financing in conjunction with commercial lending.
Preference is given to companies that create jobs, however any viable business plan will be considered.
Allen County Revolving Loan
The Allen County Revolving Loan Fund is a flexible source of financing for businesses expanding or locating to Allen County. Loan amounts are subject to the availability of funds.
BetterBuildings Northwest Ohio
Building owners are eligible for low-cost financing to pay for high-efficiency improvements to their facilities and building systems, including lighting, high-efficiency HVAC, building envelope, energy management systems and controls, compressed air and refrigeration. The program is offered through the Toledo Port Authority and the financing is offered at a competitive rate with terms up to 15 years. Payback is semi-annual through an energy improvement special assessment on property taxes.
Capital Lease Program
The Port Authority of Allen County offers a Capital Lease program that allows a company to be exempted from sales tax (6.85%) on all construction materials during a building project.
The federal Opportunity Zone program encourages investors with recently realized capital gains to reinvest those gains in local business, real estate or development projects in exchange for a reduction in their tax obligations. The city of Lima has three Opportunity Zones, primarily located in downtown.
JobsOhio Inclusion Grant
This program offers gap funding for projects at qualifying companies. Project parameters include:
- Revenue cap of $25 million
- Company is business to business
- Company must have been operational for at least one year and have a revenue minimum of
- Must be in a JobsOhio targeted industry sector: advanced manufacturing, aerospace and
aviation, automotive, autonomous mobility, energy and chemicals, food and agribusiness,
healthcare, logistics and distribution, financial services, technology.
- Project should create jobs and involve investment by the company.
- Eligible companies include those that are minority owned (African American, Hispanic, Asian
Pacific or Native American), woman-owned, owned by an individual with a disability or owned
by a veteran.
- Companies located in a designated distressed area also qualify, which includes those located in
the following zip codes: 45801, 45804, 45805, or 45887.
- No retail, residential and multi-family uses, entertainment or other population-driven
businesses are eligible.
- This is a reimbursement-based grant.
- The program may provide up to $50,000 in grant funds.
Several economic development incentives are offered through JobsOhio, Ohio’s private economic development corporation. The team at AEDG assists companies with the application process.
JobsOhio Economic Development Grant
This grant promotes economic development, business expansion and job creation by providing funding for eligible projects. Grant decisions are based on several factors such as job creation, added payroll, fixed-asset investment, location and more.
JobsOhio Growth Fund
This loan program provides capital for expansion projects to companies that have limited access to funding from conventional and private sources of financing. The gap financing tool is eligible for companies operating in targeted industries and business functions. Program eligibility also requires job creation and several other project factors.
JobsOhio Workforce Grant
The program promotes economic development, business expansion and job creation by providing funding to companies for employee development and training programs. Program eligibility requires job creation and training as well as other project factors. Eligible training costs may include: information technology. Maintenance and skilled trades, leadership skills. Product knowledge, quality management and processes, safety training, supervisory, technical processes, technical training and on-the-job training.
Research and Development Investment Loan Fund
The Research and Development Investment Loan Fund provides loan financing ranging from $500,000 to $5 million for projects primarily engaging in R&D activity. The loans have fixed rates (at or below market rates) and other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.
166 Direct Loan
The 166 Direct Loan gives eligible businesses loans for land and building acquisition, construction, expansion or renovation, and equipment purchases. The program provides low-interest loans up to 40 percent of the cost not to exceed $1.5 million.
Ohio Enterprise Bond Fund
The Ohio Enterprise Bond Fund offers 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 from seven 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
The Innovation Ohio Loan Fund provides loans for acquisition, construction and related capital costs of technology, facilities and equipment purchases. The fund was created to help Ohio companies develop next-generation products and services within the state’s key industry sectors. Loans range from $500,000 to $1.5 million and can cover up to 75 percent of the project cost.
Roadwork Development (629) Funds
Roadwork Development (629) Funds are available for public roadway improvements, including engineering and design costs. Funds are accessible for projects that create or retain jobs and primarily involve manufacturing, technology, research and development, corporate headquarters and distribution activity. Grants are provided to a local jurisdiction and require local participation. They can be used to reimburse accumulated costs.