New businesses locating in the Owensboro-Daviess County region may be eligible for a variety of incentives intended to encourage job growth and economic development while providing financial support through tax credits and assistance programs.
Expanding businesses in the Owensboro-Daviess County region may be eligible for a variety of incentives intended to encourage job growth and economic development while providing financial support through tax credits and assistance programs.
Start Up and Entrepreneurship
There are programs for matching funds and seed capital funds available for start up and small entrepreneurship businesses.
The Greater Owensboro Economic Development Corporation partners with the Kentucky Cabinet for Economic Development and other agencies in providing the incentives and services. The GOEDC staff assists with any application process associated with these programs.
Kentucky Business Investment Tax Credits
Kentucky Business Investment (KBI) Tax Credits provide income tax credits of up to 100% of corporate income or limited liability entity tax arising from a project and provides wage assessments of up to 4% of gross wages on all new jobs created.
Kentucky Enterprise Initiative Act
The Kentucky Enterprise Initiative Act (KEIA) provides a refund of Kentucky Sales and Use tax paid by approved companies for building and construction materials permanently incorporated as an improvement to real property. It is also available for Kentucky Sales and Use tax refunds for eligible equipment used for research and development and data processing equipment. Current sales tax rate is 6%.
Industrial Revenue Bonds
An Industrial Revenue Bond (IRB) is issued by state and local governments in Kentucky at a lower than market interest rate and the title to the property is held by the issuer. The financing may be for all or a portion of the total project investment.
Property Tax Reduction
Property may be exempt from local property tax for the duration of the bond since government entities are exempt from paying. The property also may be eligible for a reduced state rate of $.015 per $100 of leasehold value.
Owensboro/Daviess County Occupational Wage Assessments
Owensboro and Daviess County may participate in the KBI Program offered by the state at up to 100% of wage assessments.
Kentucky Small Business Credit Initiative
The Kentucky Small Business Credit Initiative (KSBCI) is designed to generate jobs and increase the availability of credit by reducing the risks participating lenders assume when making loans to small businesses. Using three distinct credit enhancement programs, KSBCI will help lenders finance creditworthy small businesses that would typically fall just outside of their normal lending guidelines.
Kentucky Small Business Tax Credit
The Kentucky Small Business Tax Credit (KSBTC) program is designed to encourage small business growth and job creation by providing a nonrefundable tax credit to eligible businesses hiring one or more eligible individuals and investing at least $5,000 in qualifying equipment or technology. With certain exceptions, most for-profit businesses with 50 or fewer full-time employees are considered eligible for this program. The KSBTC program is limited to allocating a total of $3 million in tax credits per state fiscal year.
Based in Lexington, Kentucky, Bluegrass Angels Inc. commenced in 2004 and is central Kentucky’s oldest seed funding organization. The organization of local angel investors are interested in fostering the growth of start-up businesses in Kentucky by investing time, knowledge and money into new, cutting edge, startup companies.
Bluegrass Angel members invest in Kentucky companies. We look for products and services that can achieve rapid adoption in very large markets.
If you’re an entrepreneur and would like to learn more about the Bluegrass Angels and be considered for angel funding, visit the website: www.bluegrassangels.com.
Commonwealth Seed Capital
Commonwealth Seed Capital, LLC, is an independent, non-profit fund that makes debt or equity investments in early-stage Kentucky business entities to facilitate the commercialization of innovative ideas and technologies.
Kentucky Angel Investors
This program is open to all entrepreneurs focused on developing an innovation-driven, technology based company located in Kentucky. Companies who meet specific criteria are considered from a presentation at a monthly meeting. Other criteria include the company be based in Kentucky and has at least 51% of its payroll and property within the state. The company must have a negotiated term sheet and lead investor who is willing to share due diligence with other potential investors.
The company must be a client of the statewide Innovation Network and have the sponsorship of a KIN (Kentucky Innovation Network) Director.
Small Business Innovation Research & Small Business Technology Transfer
The Cabinet will match, on a competitive basis, Phase 1 and Phase 2 federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards received by Kentucky high-tech small businesses and those willing to become Kentucky-based businesses. This includes matching Phase 1 federal awards up to $150,000 to support the exploration of the technical merit or feasibility of an idea or technology, and up to $500,000 of federal Phase 2 awards, which support full-scale research and development.
A partnership of manufacturers that have teamed up to address the shortage of technically skilled workers needed in advanced manufacturing. The program offers innovative, apprentice-style education and training designed to create a highly skilled workforce. The local chapter, comprised of thirteen founding members, is known as Greater Owensboro FAME or GO FAME. The Chapter is industry led and is a partnership between regional industry leaders, Owensboro Community & Technical College and Greater Owensboro Economic Development Corporation.
Grant Funding & Tax Credits
May be available for up to 100% of the costs for on the job training and customized classroom instruction for any new jobs created in Kentucky. In addition, funds may be available for the training of existing workforce on new equipment. These funds are available through the KY Skills Network.
Daviess County Economic Development Fund
Provides funds to companies considering the Greater Owensboro region as a location for a new facility. The funds may be used to assist with the purchase of land, building, infrastructure costs, workforce training or startup costs.
Small Business Loan Program (State Program)
Funds range from a minimum of $15,000 to $100,000 for three to ten years. May be used to fund up to 100% of the project costs. May be used in conjunction with other lending partners.
KY Small Business Tax Credit
Designed to encourage growth and job creation. It provides a nonrefundable tax credit to businesses with fewer than 51 employees and hiring 1 or more eligible individuals while investing at least $5,000 in qualifying equipment or technology. Most small businesses will qualify.
Small Business Loan Program (Federal Program)
Funds range from $500 to $5 million for up to 20 years depending on the type of loan. Partnering with Community Venture Corporation (CVC), GOEDC will offer assistance with several federally funded programs. The terms and conditions vary depending on the circumstances.
GRADD Loan Program Funds
Up to $150,000 and limited to 50% of project costs and may be used for working capital (limited to $50,000 and 5 years), machinery & equipment (limited to $100,00 and 7 years) land, and building for a term of 5 to 15 years. Low-interest rate the lesser of 75% of prime or 4%.
This is a list of the most commonly used incentives but not a comprehensive list by far. For eligibility requirements and more information, please contact GOEDC staff by calling 270-926-4339.