Wayne County Industrial Site Fund
Unique on a county level, this fund assists municipalities with public infrastructure improvements required to locate a manufacturing facility. Wayne County will assist in the cost of any required improvements at the lesser of one-third of the total cost, or $100,000. Can include any public water lines, sewer lines, roads, curbing, lighting, etc.
Typically, the county pays one-third, the town pays one-third, and the developer pays one-third. On larger projects, we may request assistance from state or federal government programs. In such instances, the local match is then divided using the above formula with the approval of the Wayne County Board of Supervisors. No such request has ever been declined locally.
Industrial Development Agency Revenue Bonds & Tax Incentive Program
Wayne County Industrial Development Agency (WCIDA) helps facilitate the financing of an industrial or qualified non-industrial project through the issuance of taxable or tax-exempt industrial development (revenue) bonds (IRB or IDB).
Tax Incentives may be accessed without bond financing using a sale/leaseback transaction. Eligible projects include construction, acquisition, and renovation of real property as well as the purchase of machinery and equipment.
IDB financing also provides companies with sale/leaseback benefits. A project owned by the Wayne County Industrial Development Agency (WCIDA) and leased to a manufacturing entity can provide many benefits. A sales tax exemption on the project, related sales and use taxes, and an exemption of the one percent New York State Mortgage tax are cases in point.
Additionally, the WCIDA has adopted a countywide policy for the provision of real property tax incentives for expanding manufacturing industries. The incentives provided apply to value-added only. This 10-year program allows for a 100% abatement for the first five years and a 50% abatement for the second five years of county, town, village, and school district real estate taxes, except special districts.
Business Property Tax Exemption
With few exceptions, this exemption is available for the county, town, village, and school district taxes and does apply to special district taxes. It consists of a 50% exemption in increased assessed valuation for the first year and for any new construction or improvement exceeding $10,000. The exemption would decline 5% per year for an additional nine years for a total 10-year exemption. It is available for all commercial and industrial projects, including hotels and motels, but cannot be used in conjunction with the IDA tax incentive program. A one-page application to the town assessor is all that is required.
Micro - Enterprise Revolving Loan Program
Makes loans up to $150,000 for the purchase of fixed assets or working capital. Provides both technical and financial assistance to the startup or expanding small business creating or retaining low to moderate-income jobs. The interest rate, based on prime, will be fixed at the time of closing with a repayment term of up to eight years, depending on the use of proceeds. This is available for businesses with five or fewer employees within Wayne County. At the time of application, ineligible businesses are those involved in real estate speculation, lending, gambling, or other illegal activities, pyramid sales, opinion molding, and investment activities. Additionally, refinancing of existing debt is not permitted.
Small Business Administration Program
Small Business Administration 504
This fixed asset economic development program from the U.S. Small Business Administration promotes growth and job creation in small businesses. The WEDC is a resource center for this program that provides long-term, second mortgage money for expanding businesses. The interest rate is fixed at the time of the loan funding at rates tied to yields on treasury securities, usually below the prime rate. The rate, inclusive of all serving fees, is usually 2% of above the five or 10 year U.S. Treasury Note yield and is typically 1% to 2% under market rates.
Small Business Administration (SBA) 504 loans are used in conjunction with conventional bank financing to provide a total of 50% of project costs or appraised value. Loans are available ranging from $100,000 to $1.5 million (in some cases $2 million), or up to 40% of appraised value or total project costs, whichever is less. To be eligible, owner-occupied projects should create or retain one job for each $50,000 provided by the SBA. Recipients must use proceeds from 504 loans for fixed asset projects such as purchasing land, buildings, long-term machinery and equipment, building expansion, and new construction. The 504 program cannot be used for working capital, inventory, consolidating or repaying debt, or refinancing. Most related soft costs of the project are eligible. Loan terms are up to 10 years for the purchase of equipment and machinery and up to 20 years for real property. This program is available to most types of for-profit, creditworthy businesses with a tangible net worth of under $7.5 million and which do not have an average net income over $2.5 million during the last two years.