The Wayne County Business Council is working with the Wayne County Economic Development Department and IDA to make this information available to our member base.
Wayne County IDA Revolving Loan Fund
Enhances industrial development and job creation through low-interest loans in cooperation with private and other government lending programs to provide gap financing for manufacturing projects. Recipients must create one new job for every $20,000 in loans. Available for the purchase of land, construction, renovation, machinery and equipment, and working capital.
Loans can be up to 20 percent of projected costs, up to a maximum of $300,000 (subject to availability). The interest rate is fixed as a percentage of prime adjusted quarterly and the repayment terms are typically the same as set by the principal lender.
For-profit manufacturing, industrial, commercial, warehousing and research companies in Wayne County are eligible. Retail, service, residential and farming businesses are ineligible.
Wayne County Industrial Site Fund
Unique on a county level, this fund assists municipalities with public infrastructure improvements required to locate a manufacturing facility. Wayne County will assist in the cost of any required improvements at the lesser of one-third of the total cost, or $100,000. Can include any public water lines, sewer lines, roads, curbing, lighting, etc.
Typically, the county pays one-third, the town pays one-third, and the developer pays one-third. On larger projects, we may request assistance from state or federal government programs. In such instances, the local match is then divided using the above formula with the approval of the Wayne County Board of Supervisors. No such request has ever been declined locally.
IDA Revenue Bonds And Tax Incentive Program
WCIDA helps facilitate the financing of an industrial or qualified non-industrial project through issuance of taxable or tax-exempt industrial development (revenue) bonds (IRB or IDB).
Tax Incentives may be accessed without bond financing using a sale/leaseback transaction. Eligible projects include construction, acquisition and renovation of real property as well as the purchase of machinery and equipment.
IDB financing also provides companies with sale/leaseback benefits. A project owned by the Wayne County Industrial Development Agency (WCIDA) and leased to a manufacturing entity can provide many benefits. A sales tax exemption on the project, related sales and use taxes, and an exemption of the one percent New York State Mortgage tax are cases in point.
Additionally, the WCIDA has adopted a countywide policy for the provision of real property tax incentives for expanding manufacturing industries. The incentives provided apply to value added only. This 10-year program allows for a 100 percent abatement for the first five years and a 50 percent abatement the second five years of county, town, village and school district real estate taxes, except special districts.
Business Property Tax Exemption
With few exceptions, this exemption is available for county, town, village and school district taxes and does apply to special district taxes. It consists of a 50 percent exemption in increased assessed valuation for the first year and for any new construction or improvement exceeding $10,000. The exemption would decline 5 percent per year for an additional nine years for a total 10-year exemption. It is available for all commercial and industrial projects, including hotels and motels, but cannot be used in conjunction with the IDA tax incentive program. A one-page application to the town assessor is all that is required.
Micro Enterprise Revolving Loan Program
Makes loans up to $25,000 for the purchase of fixed assets or working capital. Provides both technical and financial assistance to the startup or expanding small business creating or retaining low to moderate income jobs. The interest rate, based on prime, will be fixed at the time of closing with a repayment term of up to eight years, depending on the use of proceeds. This is available for businesses with five or fewer employees within Wayne County. At the time of application ineligible businesses are those involved in real estate speculation, lending, gambling, or other illegal activities, pyramid sales, opinion molding and investment activities. Additionally, refinancing of existing debt is not permitted.
Small Business Administration Program (SBA 504)
This fixed asset economic development program from the U.S. Small Business Administration promotes growth and job creation in small businesses. The WEDC is a resource center for this program that provides long-term, second mortgage money for expanding businesses. The interest rate is fixed at the time of the loan funding at rates tied to yields on treasury securities, usually below the prime rate. The rate, inclusive of all serving fees, is usually 2 percent of above the five or 10 year U.S. Treasury Note yield and is typically 1 percent to 2 percent under market rates.
SBA 504 loans are used in conjunction with conventional bank financing to provide a total of 50 percent of project costs or appraised value. Loans are available ranging from $100,000 to $1.5 million (in some cases $2 million), or up to 40 percent of appraised value or total project costs, whichever is less. To be eligible, owner-occupied projects should create or retain one job for each $50,000 provided by the SBA. Recipients must use proceeds from 504 loans for fixed asset projects such as purchasing land, buildings, long-term machinery and equipment, building expansion and new construction. The 504 program cannot be used for working capital, inventory, consolidating or repaying debt or refinancing. Most related soft costs of the project are eligible. Loan terms are up to 10 years for purchase of equipment and machinery and up to 20 years for real property. This program is available to most types of for-profit, creditworthy businesses with a tangible net worth of under $7.5 million and which do not have an average net income over $2.5 million during the last two years.
NEW YORK STATE INCENTIVES
Financial Assistance Programs
State programs support the acquisition of land and buildings or machinery and equipment. They also can help fund construction or renovation of buildings or the infrastructure and working capital required for the establishment of an eligible company.
Funds May Be Available Through:
- Direct loans or grants to business for a portion of the cost of the project and dependent on job creation.
- Interest rate subsidies as a grant or linked deposit with the lending institution to reduce the cost of borrowing from private or public sector financial institutions.
- Loan guarantees for working capital assistance.
- Infrastructure assistance as a loan and grant combination for a portion of the cost of an infrastructure project.
- The state can provide financial assistance for most types of businesses including manufacturing, warehousing, service companies, research and development and tourism destination projects.
Tax Incentives Programs
Excelsior Jobs Program – For More Information, see Excelsior Jobs Program.
New York State Department Of Labor
Federal Bonding Program
As an incentive to employers to hire a job applicant who is potentially a high risk for theft, forgery, or embezzlement (i.e. ex-offender, ex-addict, someone with poor credit, person with a dishonorable discharge), this program will issue a Fidelity Bond to the employer free-of-charge for six months. If worker demonstrates honesty during the first six months of Federal Bonding Coverage, the worker can become bondable for life under commercial bonding available to the employer for purchase from Travelers Property Casualty Insurance Company.
Karen Blankenberg 315-946-7270 email@example.com
WOTC (Work Opportunity Tax Credit)
Businesses can receive a federal tax credit of 40 percent of the first $6,000 first year wages ($2,400) by hiring individuals from designated target groups: TANF recipients, Veterans whose families are receiving food stamps, disadvantaged ex-felons, high risk youth ages 18-24, vocational rehabilitation referrals, summer youth ages 16-17, food stamp recipients ages 18-24, SSI recipients. Two simple forms (one is most effective if used with all applications seeking employment with your company).
Businesses can receive a federal tax credit of $8,500 over a two year period by hiring long-term welfare recipients (continuous 18 months immediately prior to hire).
WETC (Workers with Disabilities Employment Tax Credit)
Business can receive a state tax credit of 35 percent of the first $6,000 wages ($2,100) during the second year of employment by hiring disabled individuals. An individual qualifying for WETC also qualifies for WOTC which enables the company to receive two years of tax credits.
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