Millions of dollars are available in local, state, philanthropic, and venture funding.
HTC will invest $2M in new local companies by the end of this year.
Financial Incentive Programs
BioEnterprise provides signifcant financial assistance and investment to qualified bioscience companies by connecting them with bioscience venture capital and private equity firms and working with clients to identify appropriate loans or grant funding opportunities.
This program offers long term, fixed rate financing. For business financing, the minimum interest rate is currently under three percent, or 75% of the prime rate listed in the Wall Street Journal. The maximum city participation is 33.3% of total project cost. Loan terms are typically 5-7 years on equipment and up to 20 years on land and building. Eligible activities are property acquisition, equipment purchase, new construction and related soft costs. Loans may be used with private and public funds.
The Vacant Property Initiative helps overcome barriers in the full reuse of abandoned, idled or underutilized commercial and industrial properties within Cleveland. Eligible activities are property acquisition, environmental site assessments, site clearance and demolition, “as is” and “as completed” property appraisals, new construction and renovation.
The Working Capital Loan Program helps companies that need additional working capital beyond their traditional lines of credit by providing low interest loans currently below 3%. City Assistance is designed to bridge the gap and help the company purchase the inventory and raw materials needed to fulfill orders.
The Equipment Loan Program offers long-term fixed-rate financing. The minimum interest rate will not be less than the lower of four percent or 75% of the prime rate listed in the Wall Street Journal. Loans can be up to $500,000, however the maximum City participation is 33.3% of total project cost. Loan terms are typically 5-7 years on equipment.
The Job Creation Incentive Program is designed to attract new and expand existing businesses in the City of Cleveland. Grant assistance can be applied to new businesses creating five or more new jobs in the City within the first year or for existing businesses with substantial job creation. Eligible applicants may receive grants of up to 0.5% of new payroll to the City for up to three years and may also qualify for an additional $5,000 Moving Assistance Grant.
Partnering with U.S. Small Business Administration and Cuyahoga County, this performance grant allows businesses to reduce their equity in a SBA funded project from the required 25% to 10%. The City provides a grant of 15% which is funded half by the City and half by the County. The goal of this grant is to leverage financing to benefit small businesses in the creation of jobs and opportunities in the City of Cleveland.
Opportunity Zones were established by the Tax Cuts and Jobs Act of 2017 with the goal of creating long-term investments in regions of low-income rural and urban. The Opportunity Zones provide tax incentives for investors to re-invest their unrealized capital gains in to funds that are dedicated to investing within the Opportunity Zone.