Local Loans, Grants and Bonds
Business Development Loans – The City of Warren assists small business development with loans for capital assets and working capital to start or expand a business. Retention or growth of employment opportunities is a key factor for these short term, fixed rate, low interest loans. A business plan, financial records, projections and collateralization are required for these loans; however, assistance is available throughout the application process. Many times these loans are part of a larger financing package, with the City Loan providing the gap between primary financing sources and the owners equity. Warren Redevelopment and Planning Corp. administers the City Loan Programs. Loans cannot be used for speculative purchase of real estate or housing projects.
Façade Improvement Loans – The City of Warren encourages façade improvements in targeted areas by offering Façade Improvement Loans at 3% interest for up to $15,000 on commercial buildings and $25,000 on historic buildings. Loans can be used for façade improvements, landscaping, parking lot improvements, lighting, etc. Most commercial corridors qualify as target areas.
Mahoning Valley Economic Development Corporation – MVEDC has a number of programs available, from small business loans, i.e. SBA 504, to a day care center loan fund.
Industrial Revenue Bonds (IRB) – Small issue bonds that can be used for manufacturing purposes. A Bond issued by public entities on behalf of the companies, therefore having interest not subject to federal income taxes, allows for lower rates. Due to the up-front fees involved, however, these are not recommended for projects under one million dollars.
City of Warren Tax Incentives
City of Warren Property Investment Reimbursement – Based on an Employment and Investment formula, the reimbursement applies to new withholding taxes paid annually and requires new employment and a minimum investment of $25,000. This is a 10 year tax abatement – full percentage for the first five years and phased out over the second five years.
Warren Profits Tax Credit – Based on an Employment and Investment formula, this credit applies to any increased profits experienced by the company. A minimum investment of $150,000 is required. This is a 10 year abatement – full percentage for the first five years and then phased out over the next five years.
Enterprise Zone Tax Abatements – Property tax abatements are available for any additional improvements to the infrastructure of a property. Abatements in the City can be as high as 100% over 10 years (over 75% requires school board approval). There is an annual fee of $750. Abatements are not to be used for relocation from one part of the State of Ohio to another but there can be exceptions to this rule.
CRA (Community Reinvestment Area) Abatements – These work similar to the Enterprise Zone tax abatements listed above. The property site must be within the City’s CRA district, which is not the same as the Enterprise Zone. For the City’s purposes, CRA abatements are mainly designed to assist with tax abatements for housing projects or restorations.