Using Government Incentive To Grow Your Company

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  • By

    Bruce Dobb & Mario Padilla

    Concerned Capital

    Using Government Incentives to Grow

    Your Company

    Presented To: NAME THE COMPANY

    633 West 5th Street, Suite 2800, Los Angeles, CA 90071 Phone: 213 223 2009 Fax: 213 481 8149

  • Background


    Field of economic development is when government creates

    or saves private sector jobs

    After the Northridge Earthquake SBA

    disaster loans helped rebuild the Valley

    This recession has turned California

    into a Disaster Area one of nations

    three highest unemployment areas

    Without Government

    Intervention the Southern California economy will not

    come back

  • What Concerned Capital Does


    Were a bridge between the public sector and private companies seeking to use government incentives

    Help the owner figure out the strategy that fits his/her needs for government subsidies

    Use full range of incentives loans, tax credits, site relocation incentives, job training and workforce recruitment

  • Incentives Based on Location


    California Enterprise Zone

    -Hiring Tax Credit

    -Sales & Use Tax Credit

    -Net Interest Deduction for Lenders

    Federal HUD/IRS Empowerment Zone Incentives

    Hiring Tax Credits

    Accelerated Depreciation of Asset

  • Non-traditional Financing That

    Makes Deals Work


    No down payment

    Low interest rate

    Long repayment terms

    No points or fees

    Some or all of the above


    US Dept. of Commerce

    New Markets Tax Credit

    Redevelopment Authority


    Tax Exempt Financing

  • Creating or Using Renewable Energy



    Electric utility direct loan programs

    Tax credits and rebates

    Government procurement set-asides


    Site assistance and subsidies

  • Workforce Training


    Recovery Act Programs Nationwide:

    1) From Workforce Investment Act (WIA) Adult program ($500 million)

    2) Dislocated worker program ($1,250 million)

    3) Youth program ($1,200 million)

    4) Handicap funding ($150 million)

    5) Reemployment Services ($250 million)

    6) Worker training in growth sectors ($750 million)

    California receives large share of these funds based on need and population

    Incentives as high as $ 5,150 per employee hired to compensate employer for time off needed for job training

  • Success Story # 1


    Computer co-location company needed to


    Devised energy saving plan to keep servers from over heating

    Received $ .5 million from City of LA to

    build out leaseholds

    Cut energy costs by 50% in first year of


  • Success Story #2


    Steel Distributor seeking to create 75 jobs and diversify business by

    manufacturing a product

    Identified surplus building

    owned by City

    Floated a long-term

    $ 2 million bond for leaseholds

    Launched company

    with hiring tax credits

    and training dollars

  • A Success Story # 3


    45 year old LA mail order company with two aging owners who couldnt sell for 5 years dozens of lookers

    Company had sold its real estate and saddled with debt and negative earnings

    But had provided $ 350,000 per year compensation to owners for 10 years

    Successfully sold to management in 3 months

    Saved 60 jobs and retained customer base

  • Maximizing Incentives & Subsidies


    1st priority business plan requirements

    2nd priority -identify affordable financing

    3rd priority

    maximize allincentives

  • Were Results Oriented


    Have the credentials & experience to

    get the job done

    Know the government


    Have the information

    Work for you directly

  • Getting Started


    Create planIdentify options and incentives

    Shop to maximize objectives


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