ENTERPRISE ZONE
 

Today's industries are beginning to find support, new emerging markets and an untapped labor pool, in unexpected places: the social sector, public school partnerships, and the cities. Indeed, a new paradigm for innovation is emerging: a partnership between private enterprise and public interest that produces profitable and sustainable change for everyone. Bizquests has a proven competency in identiying new funding sources for our clients.

The Enterprise Zone, is a special State of California program. It can provide an aggressive package of tax incentives to businesses located in areas of economically distressed. Some of the tax incentives include:

  • Tax Credits from $17,000-$26,000 per new eligible employee
  • Sales Tax Credits on new equipment and accelerated depreciation schedules
  • Pass Through from lending institutions on no interest net interest income
  • JTPA (Job Training Partnership Act) state tax credit, and wage reimbursement
  • Fee Deferment and Business Booster Loan

Also available for funding is "California Communities," a statewide public agency that specializes in issuing tax-exempt financing for public agencies and eligible private agencies for industrial, housing, and other tax-exempt facilities. Currently this debt is pricing between 5% and 6%. California Communities has issued nearly $10 billion in tax-exempt financing and is the largest California issuer of small issue industrial development bonds. There is a high priority for projects located in California Enterprise Zones and Redevelopment areas.

The Land, Building and Equipment Program (LBEP) provides eligible businesses within California (the borrowers) with tax exempt financing. This will enable borrowers to finance projects for manufacturing, processing solid waste or recycling solid waste at a lower rate of interest than generally what is available through a commercial financing.

The California State Association of Countries, the League of California Cities and the California Manufacturers Association have through a competitive bidding process; put together an experienced team of professionals to assist eligible businesses with project financing. While financing rates and terms may vary based on credit stand, the following chart illustrates the general terms and cost of financing:

Contact Bizquests to find out how the above and similar programs can work to finance projects.