Download pdf - Using Government Incentive To Grow Your Company

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

[email protected]

Background

www.concernedcapital.org2

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 nation’s

three highest unemployment areas

Without Government

Intervention the Southern California economy will not

come back

What Concerned Capital Does


We’re 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

apply

US Dept. of Commerce

New Markets Tax Credit

Redevelopment Authority

SBA

Tax Exempt Financing

Creating or Using Renewable Energy

Sources


Electric utility direct loan programs

Tax credits and rebates

Government procurement set-asides

Grants

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

expand

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

operation

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 couldn’t 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

We’re Results Oriented


Have the credentials & experience to

get the job done

Know the government

officials

Have the information

Work for you directly

Getting Started


Create planIdentify options and incentives

Shop to maximize objectives