Business Incentive
Business Incentive
About Arcanum
The Village of Arcanum has taken steps to invest in businesses, new and old, which are willing to invest in our community. The Village of Arcanum along with the Darke County Economic Development Office and the State of Ohio Department of Development can offer competitive incentive packages to those businesses that are willing to retain and/or create jobs in the Village of Arcanum. A summary of local and State incentives are listed below:
Utility Service Fees and Rates
Utility Bills– The Village of Arcanum’s special contracts for electric and water service provide for an initial 2-year, 10% discount on both utilities that service current or potential customer who may choose to locate or relocate their business with the Village. To be eligible a business must not generally serve the economic welfare of the Village. These special contracts will be offered to assist in the creation/retention of jobs and improve the economic welfare of the Village of Arcanum. Terms and Conditions are negotiable.
Tap Fees– The Village of Arcanum is willing to waive water and sewer tap fees for customers who may choose to locate or relocate their business with the Village. To be eligible a business must not generally serve the economic welfare of the Village. These special contracts will be offered to assist in the creation/retention of jobs and improve the economic welfare of the Village of Arcanum. Terms and Conditions are negotiable.
Lateral Installation– The Village of Arcanum proposes to install water and sanitary sewer laterals at no cost to business that assist in the creation/retention of jobs and improve the economic welfare of the Village of Arcanum. Terms and Conditions are negotiable.
Energy Efficiency Program
The Village of Arcanum can help its customers to utilize their power efficiently. The Village is not only your provider of local municipal electric; we are your partner in maintaining efficient operations. We want our businesses to be profitable, and will do our part to assist businesses in identifying ways to most efficiently utilize their energy sources and reduce their energy costs. The Village can offer incentives towards projects that will reduce a customers energy cost.
Income Tax Grant
The Village of Arcanum can provide an Income Tax Grant to companies creating full-time jobs within the Village. The maximum grant will be $100,000 annually for any company.
- Companies may receive a grant equal to 15% of Arcanum Village income tax collected for every $500,000 in new payroll. This grant can be awarded for a period of 5 years.
- Companies may receive a grant equal to 15% of Arcanum Village income tax collected for every $1 million in new payroll. This grant can be awarded for a period of 10 years.
Revolving Loan Fund
Darke County offers Revolving Loan Funds (RFL) to encourage the retentions and expansion of businesses within Darke County. These loan funds enable Darke County to provide stabilization to the counties employment and economic base. The RLF programs in partnerships with local lending institutions provide below market financing for projects which otherwise may not be feasible to the owner(s). Eligible borrowers include manufacturing, wholesale, retail, and service businesses located in Darke County. Eligibility requirements do apply.
Basic 7(a) Loan Guaranty (SBA)
- Eligible for start ups and existing small businesses.
- This program helps qualified small businesses find financing when they are not eligible for normal lending
- Loan maturity is up to 10 years on working capital, and can be up to 25 years for fixed assets Certified Development
Company, a 504 loan program (SBA)
- Those eligible are small business needing “basic needs” financing
- This program provides long term, fixed rate financing to small businesses to purchase real estate or machinery and equipment for expansion or modernization
- Businesses must create or retain 1 job per $50,000 loaned by the SBA. Small manufacturers must create or retain 1 job per $100,000 or improve the economy of the area or achieve one or more public goals
Micro loan, a 7(m) Loan Program (SBA)
- Small businesses and non-profit child care centers needing small scale financing and technical assistance for start up or expansion are eligible for this program
- Provides short term loans up to $350,000 for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery, and/or equipment
- Loans cannot be used to pay existing debt or to purchase real estate
Business and Industry Guaranteed Loans (USDA)
- Eligibility requirements: 1) provide employment; 2) improve economic/environmental climate; 3) promote conservation, development and use of water for aquaculture; 4) reduce reliance on non-renewable energy resources
- This program aims to improve the economic and environmental climate in rural areas
- The total amount of the loan is not to exceed $10 million. Maximum repayment time is not to exceed 30 years for real estate and 15 years for machinery and equipment
Rural Business Enterprise Grants (USDA)
- This program is for rural public entities, Indian tribes, and rural private non-profit corporations
- It provides grants for projects that finance and bring development of small and emerging rural businesses that help to fund distance learning networks and employment related adult education programs
- Project must be discussed with USDA Rural Development State Office
Section 9006 Grant Program (USDA)
- Those eligible are farmers, ranchers, and rural small businesses who are able to prove financial need
- This grant provides assistance for purchasing and installing renewable energy systems and/or make energy efficiency improvements
- Grants are awarded on a competitive basis and can be for up to 25% of eligible cost
- Section 9006 Guaranteed Loan Program (USDA)
- Must be an agriculture producer or rural small business to qualify
- Encourages commercial financing for renewable energy and energy efficiency projects
- Maximum loan is 50% of project cost with a minimum of $5000 per project and maximum of $10 million per project
Ohio Enterprise Bond Fund (ODOD)
- For expanding businesses who are able to show repayment and management capabilities
- This program allows unrated companies access to national capital markets
- Must be discussed with Regional Economic Development Director
- Volume Cap Program (ODOD)
- Eligible for low-income home buyers, student loans, construction or improvement of certain types of manufacturing facilities, solid waste treatment equipment or pollution abatement facilities, or multi-family rental housing developments
- This program gives bond issuers the ability to finance projects at interest rates that are below conventional rates
- Must be discussed with the Regional Economic Development Director
- 166 Direct Loan (ODOD)
- Available to businesses that create or retain 1 job for every $15,000
- Program provides loans for land and building acquisition, expansion or renovation and equipment purchases for eligible businesses
- Restricted to up to 30% of total eligible costs
- Regional 166 Direct Loan (ODOD)
- Eligible business must retain 1 job for every $35,000 received
- Program provides loans for land and building acquisition, construction, expansion or renovation, and equipment purchases for eligible businesses
- Restricted to up to 40% of total eligible costs
Further Business Retention/Expansion/Creation information
For more information about the Village of Arcanum/Darke County contact Mike Bowers, Darke County Economic Director at (937) 548-3250.