Often when companies ask REDI about JobsOhio incentives, we hear questions about the Jobs Creation Tax Credit (JCTC) program. While this is a well-known incentive option, it may not be the best choice to nurture your company’s growth.
Beyond the JCTC program, JobsOhio offers a variety of grants and loans, each with specific goals and metrics attached. Of REDI’s 23 announced projects in 2016, nearly 40 percent involve a JobsOhio loan or grant program.
If you’re considering applying for a JobsOhio program, here is a quick overview of loans and grants:
Addresses different needs
A JCTC is applied to the company’s commercial activity tax (CAT) with any credit superseding the tax liability refunded back to the company. Loans and grants are useful for projects with large fixed-asset and infrastructure investments, and can be applied to train a company’s workforce. Bottom line – projects with a significant fixed capital investment should explore ways JobsOhio can provide support through more than incentives alone.
Offers diverse and flexible funding
The biggest advantage of a JobsOhio loan is the ability for prospects to “keep their powder dry.” When JobsOhio provides funding, a company does not need to return to the same sources it used in the past. Moreover, JobsOhio partners with banks to act as a shared, or subordinate, lender, offering lenders an extra security layer.
Another major benefit is the flexibility JobsOhio loan programs can bring. Because JobsOhio operates on public-private financing, the team can give different loan terms than a standard lender. Rather than rates and terms applied universally, JobsOhio can determine these factors based entirely on the project’s metrics and needs. Once a deal is closed, the rate and term offered can become fixed, which allows the company to plan for the future without risk of rate changes.
No state offers a “one size fits all” incentive or grant program, which means the best program for your business depends on your project’s specific needs. At REDI, we are well-versed in finding the right program to help your company thrive. If you’re interested in learning more about grants, loans or incentives your company can qualify for, connect with Kimm Coyner, vice president, business development and projects, at (513) 579-3133 or KCoyner@REDICincinnati.com.