Businesses expanding in or relocating to the City of Cincinnati are eligible for several incentive programs. Some of these programs reduce annual operating costs, and in so doing, provide businesses direct cost reductions.
The City of Cincinnati has four tax incentive programs
Cincinnati levies at 2.1% tax on the net profits of firms. If a company is moving to Cincinnati, or creating jobs in Cincinnati, they may be eligible for a job creation tax credit or a reimbursement.
The City of Cincinnati may offer a Property Investment Reimbursement (PIR) incentive to a company that is considering expanding in or moving to Cincinnati.
Developers making a large-scale investment that requires substantial public improvements may be able to use tax increment financing (TIF) to offset a portion of those costs. The city has 21 tax increment districts and in some cases will create a TIF specific to a project.
The Cincinnati Public Schools, Hamilton County, and the City levy a property tax to meet a wide variety of local service needs. If a company is making an investment that will result in a substantial change to its property tax obligation, and they are creating jobs, they may be eligible for a property tax abatement.
Financial Assistance Application
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Small Business Loans
The City has two loan funds available for uses such as permanent working capital, purchasing real estate or equipment, and refinancing existing debt.
The MicroCity fund provides loans to small businesses in amounts up to $35,000. It is used to encourage expansion by providing “gap” debt financing. Funding is available to successful growing or emerging small businesses that meet our underwriting requirements and are located within the City of Cincinnati.
The Grow Cincinnati Fund was created to provide capital for fixed assets, working capital, and eligible refinancing to small businesses located in the City of Cincinnati. It is used to encourage expansion and increase the capacity of small business by providing ‘gap’ debt financing and access to technical assistance. Funding is available to successful growing or emerging small businesses that meet our underwriting requirements.
SoMoLend gives entrepreneurs the tools and financing they need to create jobs within their community. In turn, we give lenders the opportunity to invest in the things, ideas and people they care about most, all the while earning higher than average returns on their portfolio investments.
The SBA 504 Loan Program provides long-term fixed-asset financing at an attractive interest rate administered by the Hamilton County Development Company. 504 Program provides subordinated, fixed interest rate, long-term loans for up to 40% of project costs or $5,000,000 (up to $5.5 million in special cases). Terms are 10 and 20 years, depending on the economic life of the asset being financed.
Community Development Block Grant Float Loan (CDBG)
The CDBG Float Loan is used to provide short-term low cost financing for construction and CDBG eligible projects. For more information pleas contact firstname.lastname@example.org
In today's economy companies are always looking at ways to grow responsibly. With each day the business world becomes more and more global, and these companies have the potential to expand and/or relocate anywhere in the world. For this reason, the City of Cincinnati has made it a top priority to focus on retaining existing businesses and ensuring their growth.
Economic Development puts much emphasis on and significant effort in retaining, assisting, and growing companies currently located in Cincinnati. To accomplish this, we have begun to proactively set up one-on-one onsite company visits. We want to help businesses in Cincinnati connect with the City and with neighborhood resources. Another goal of our onsite visits is simply to get to know our business owners and management teams, and to thank them for locating their businesses in Cincinnati. We cannot say this enough, especially in today's economic climate.
Goals for City of Cincinnati Expansion / Retention site visits:
- Build relationships
- Gain insight into business climates
- Identify opportunities for Economic Development to help businesses thrive
If you are a business in the City of Cincinnati that would like to schedule a retention or expansion visit, please email us and one of our development officers will be available to assist you.