Outline of Incentives and Financing Tools

(Asterisk indicates local incentives)

Location-based Incentives

City of Van Wert Community Reinvestment Area Tax Exemption*
The Community Reinvestment Area program can offer an exemption from real property taxes of up to 100 percent of local real property taxes for a period of up to 15 years for commercial or industrial new building or improvement projects with a minimum investment of $5,000. Exemptions over 75% must be approved by the local school board. To be eligible, a company must enter into an agreement prior to going forward with the qualifying project.

Van Wert County Enterprise Zone Tax Exemption*
Through the Van Wert County Enterprise Zone, an exemption can be offered to effectively abate up to 100 percent local real property taxes for a period of up to 15 years. The local school board must agree to any abatement over 75% prior to the company going forward with the qualifying project. The Enterprise Zone Program is reserved for manufacturing, distribution or service related projects only. Retail can apply through the CRA program. All of the City of Van Wert is within an established Enterprise Zone.

Lease-to-Own Building Purchase Option*
The Van Wert County Business Development Corporation (BDC) can assist with lease back arrangements to incentivize new projects. In two previous projects, the BDC negotiated the construction or purchase of a building for an end user, held ownership for a set term, during which time the tenant made lease payments. The tenant takes ownership of the building at the end of the term.

Roadwork Development 629 Account
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. Projects must typically create or retain jobs. Grants are usually provided to a local jurisdiction and require local participation.

Foreign Trade Zone Support
Foreign Trade Zone (FTZ) is a federal designation essentially declaring a geographic area to be outside the stream of U.S. commerce. The designation benefits companies in an FTZ by allowing them to defer or avoid U.S. customs tariffs and duties, and to enjoy other advantages that occur when importing products normally subject to quotas. The City will support an application, facilitating approvals as necessary, to designate a FTZ at the project site.

Job Creation Incentives

State of Ohio Job Creation Tax Credit
This is 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 percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s commercial activity tax liability for any given year, the difference is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.

City of Van Wert Job Creation Incentive Program*
This incentive program, offered by the City of Van Wert, is for non-retail projects that create new payroll of at least $250,000. This local program makes an annual payment to companies based on new payroll and on job creation with average wages at least 150% above minimum wage. The payment is based on 30% of municipal income tax withheld by the City of Van Wert for a term of up to 10 years.

Permitting Fees*
The City of Van Wert has the authority and can waive all permit fees in exchange for the creation of a substantial number of jobs. In addition, the City can expedite the permit process to accelerate project timing.

OhioMeansJobs.com
This site is an employer-driven job matching system that combines job listings from major job boards, newspapers, associations, and company websites to create a comprehensive listing of jobs throughout Ohio. Job seekers can browse through the nearly 100,000 employment opportunities – all for free. Employers who register through the OHIO BUSINESS GATEWAY can also browse through thousands of resumes for free. Ohio is the first state in the nation to offer frees access to a publicly-funded online recruitment system.

Workforce Education and Training Incentives

Ohio Works Incentive Program
The program allows for placement and retention incentives to be earned for individuals placed in on-the-job training or directly into unsubsidized employment. There are additional incentive payments that may be earned for individuals retaining these positions 90 or 180 days (to achieve retention incentives the on-the-job training component must have ended and the employment must have been maintained for at least 90 or 180 days from the initial placement date). The goal of this project is to reduce dependency on the Ohio Works First program while strengthening Ohio’s workforce.

State of Ohio Incumbent Workforce Training Voucher Program
This program provides a reimbursement, up to $4,000 per employee per fiscal year, against qualified training costs. Must be a targeted industry with a facility located in Ohio that has been operational for at least 12 months. Application must be completed a minimum of 30 days in advance.

On-the-Job Training Program
A federally funded program that helps employers hire and train laid-off workers for full-time, long term employment. Employers may be reimbursed up to 50% of the wages earned by eligible new trainees while they learn the job. An OJT agreement must be developed before new employees are hired. Funding is available on a first-come, first-served basis. Total reimbursement cannot exceed $5,000, and the length of the training cannot exceed six months or 1040 hours.

Ohio Learn to Earn
This program matches individuals looking to work with businesses looking to hire. It gives employers the opportunity to train potential employees at no cost and individuals the opportunity to enhance their skills, network and earn a training certification. Risk-free evaluation of a trainee’s fit with your company.

JobsOhio Workforce Grant
The JobsOhio Workforce Grant was 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.

Financing Assistance

JobsOhio Economic Development Grant
The JobsOhio Economic Development Grant was created to promote economic development, business expansion, and job creation by providing funding for eligible projects in the State of Ohio.

U.S. Small Business Administration 504 Loan Program
This program provides long-term, fixed-rate financing to acquire major fixed assets such as land and building acquisition; building improvements including grading, street improvements, utilities, parking lots and landscaping; construction of new facilities or modernization, renovation or conversion; and the purchase of long-term machinery and equipment. At least 10 percent equity from the small business borrower is required.

GrowNow
Program provides a 3% interest-rate reduction on new or existing small business loans when the small business can commit to creating or retaining jobs in the State of Ohio. Available through the State Treasurer of Ohio and participating commercial lending institutions; formerly known as the Linked Deposit Program.

State of Ohio 166 Direct Loan Program
Long term fixed rate low-interest loans up to 40% not to exceed $1.5 million for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Term based on useful life of the assets being financed and up to 15 years for real estate.

State of Ohio 166 Regional Loan Program
Long term fixed rate 3% interest loan up to 75% not to exceed $500,000 for land and building acquisition, building construction/renovations, leasehold improvements, machinery & equipment. Term based on useful life of the assets being financed and up to 15 years for real estate.

Ohio Enterprise Bond Fund
Provides 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 between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to 90% financing of eligible costs from $2,000,000 to $10,000,000.

Northwest Ohio Bond Fund
Provides 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 7 to 10 years for equipment and 15 to 20 years for real estate. Up to 90% financing of eligible costs for $1,000,000 to $8,000,000.

Innovation Ohio Loan Fund
Loans for acquisition, construction, and related capital costs of technology, facilities, and equipment purchases. Fund created to assist existing Ohio companies in development next-generation products and services within the state’s Industry Sectors up to 75% ranging from $500,000 to $1.5 million.

CDBG Economic Development Revolving Loan Fund *
The City and County of Van Wert Economic Development Office can also assist in securing gap funding for land and building acquisition, construction, equipment and working capital needs based on job retention and creation commitments. Project cannot begin until approved.

Energy-Efficiency Assistance

State Treasurer of Ohio Re-Energize Ohio
This program offers up to 3% interest rate reduction on new or existing small business loans when at least 50% of the loan proceeds are used to implement energy-efficient upgrades. Small businesses may apply the interest rate reduction on up to $550,000 of the loan amount for a term of four years.

Better Buildings Northwest Ohio
Owners of virtually every type of building are eligible for low-cost financing to pay for energy efficiency improvements. This commercial financing is offered at competitive interest rates with terms up to 15 years for projects that focus on conserving energy and generating savings through equipment retrofits to existing facilities. Financing is structured so that the energy savings will cover the cost of equipment, upgrades, installation and transaction cost, which make these projects “self-funding”. In addition, eligible utility company rebates and other incentives can be included in the financing. To be eligible, projects must be an energy efficient retrofit to an existing building. Some examples of projects that can be financed are lighting, high efficiency HVAC, building envelope, energy management systems and controls, steam systems, compressed air, and refrigeration.