The City of Troy and the Ohio Department of Development offer a broad range of financial incentives designed to encourage business activity in the state. These incentives, combined with the many state services, help meet businesses' start-up or expansion needs.
Local Incentive Programs
CDBG Revolving Loan Fund
The City of Troy operates a business loan program that can help finance the purchase of fixed assets such as real estate, buildings, or manufacturing equipment. The loan program is designed to work with conventional bank financing. Typical loans can finance up to 50% of a project, subject to availability of funds. Loans are evaluated on the basis of the jobs created in the community.
The City of Troy Enterprise Zone Program, certified by the Ohio Department of Development, can provide real property tax abatement for investments resulting in renovation of existing buildings or new construction, furniture and fixtures as first used in the business. The Enterprise Zone Program is a contractual relationship between the City and the enterprise within which the City grants development incentives in exchange for investment in real and tangible personal property and creates and preserves employment opportunities.
Downtown Revitalization Loan Program
The City of Troy also operates a CDBG loan program to assist businesses that repair or remodel buildings in downtown Troy. Loans are evaluated on the basis of the contribution the completed project makes to downtown Troy revitalization efforts.
Community Reinvestment Area
The downtown Troy Historic District is designated a Community Reinvestment Area (CRA) offering real property tax incentives for residential and non-residential renovation or construction projects.
County Corp - Gap Financing
In addition to the small revolving loan program offered by the City of Troy, projects can be partially financed by County Corp. CountyCorp Development is a private not-for-profit development corporation, a Certified Development Company through the U.S. Small Business Association. It is Ohio's representative for the Regional 166 Program. CountyCorp Development offers lending programs in Troy and the State of Ohio. www.countycorp.com
State of Ohio Incentive Programs
The State of Ohio offers various development incentives in the form of low interest rate loans, infra-structure loans and grants, job creation tax credits, machinery and equipment investment tax credits and job training funding programs.
Ohio Job Creation Tax Credit
A refundable tax credit taken against a company's Commercial Activities Tax (CAT). The credit is awarded in a rate and a term based on the income tax withholdings of new employees. Rates typically range between 35-45% with terms ranging from 5-7 years. Should the amount of the credit be greater than the company's Commercial Activities Tax in any given year, the amount of the difference will be refunded.
Research and Development Investment Loan
A loan administered by the Ohio Department of Development's Office of Financial Incentives for up to 50% of a project's associated R&D costs. Eligible projects must include job creation, and funds can be used for costs such as acquisition of machinery and equipment, leasehold improvements, and building construction. The interest is not to exceed Â½ of the prime rate, and the term of the loan is up to 10 years for machinery and equipment and 15 years for real estate. The Research and Development Loan also includes an annual non-refundable tax credit to be taken against a company's Commercial Activities Tax liability equal to the amount of the principle and interest paid on the loan in that year. The amount of tax credit cannot exceed $150,000 per year.
Innovation Ohio Loan Fund Program (IOF)
The IOF program can finance up to 75% of a project's qualifying costs through loans in the range of $500,000 to $3 million. The program provides financial resources for product commercialization for leading technology companies. While loan terms will be individually negotiated, interest rates will be prime plus 2% and the loan will be in the range of 4-7 years. Allowable costs include the acquisition, construction, renovation, or improvement of facilities, and the acquisition and installation of equipment for innovative projects that create new products and services.
166 Direct Loan
A loan administered by the Office of Financial Incentives for up to 30% of a project's costs or $1 million (the lesser thereof). The remainder of the financing must be through a combination of private financing and at least 10% owner equity. Allowable costs include the acquisition of machinery and equipment, building or land acquisition, and building construction. The interest rate is not to exceed 2/3 of the prime rate and terms range from 7-10 years for the acquisition of machinery and equipment and 10-15 years for real estate.
Ohio Enterprise Bond Fund
Through this bond fund, which is rated AA- by Standard and Poors, the Ohio Department of Development issues bonds, the proceeds of which are loaned to businesses for eligible projects. Allowable costs include acquisition of machinery and equipment, building or land acquisition, and building construction. The Ohio Enterprise Bond Fund can finance up to 90% of eligible project costs or $10 million (the lesser thereof), with terms ranging up to 20 years.
Ohio Investment in Training Program (OITP)
This program provides financial assistance and technical resources for customized training involving employees of new and expanding Ohio businesses. OITP provides up to 50% reimbursement to fund instructional costs, materials, and training-related activities. There is an emphasis on selected employment sectors that have significant training and capital investment related to creating and retaining jobs. OITP also support community economic development efforts through job creation and retention. The result is increased employee productivity, improved labor/management relations, and a highly skilled labor pool.
Ohio Research Commercialization Grant Program
The Ohio Research Commercialization Grant Program strives to improve the ability of small technology companies to assess and realize the commercial potential of research projects, and to promote the competitiveness of these companies through the augmentation of federal research and development funding. The Ohio Research Commercialization Grant Program is a primary component of Ohio technology company assistance.
Targeted Industries Attraction Grant
Grant funds available for project costs incurred by bioscience companies committed to hiring high-tech positions. Awarded funding can be used toward acquisition of machinery and equipment, land or building acquisition, or building construction.
Rapid Outreach Grant
Grant funds for project costs including the acquisition of machinery and equipment, land or building acquisition, leasehold improvements, or building construction.
Roadwork Development Grant
Grant funds available for up to 50% of project costs associated with public roadway improvements.
Regional 166 Direct Loan
The Regional 166 loan programs provides loans for land and building acquisition, construction, expansion or renovation and equipment purchases for eligible businesses. Twelve local economic development agencies administer this program. Our local agency is West Central Development Corporation.
More information on the programs offered through the State of Ohio can be found at The State of Ohio Department of Development website.