CITY OF SPRINGFIELD
Business Loan Program: The City of Springfield has devoted a portion of its federal block grant (CDBG) funds to provide loans to businesses. These loans are required to meet HUD’s national objective of benefiting low to moderate income persons, which can be accomplished by requiring that a minimum 51% of jobs created or retained be filled by low—moderate income individuals.
Enterprise Zone: The Springfield zone is one of nearly a hundred in Illinois and has been extended to run until 2014. All additions to the zone must meet city and state regulations. Benefits for the zone include: sales tax deductions on building materials, property tax abatements, investment tax credit, machinery and equipment sales tax exemptions, utility tax exemptions, dividend income deductions and interest deductions.
TIF Districts: Currently, Springfield has seven TIF districts: the Central Area TIF; Fiat Allis Complex TIF; Near North Crossing TIF; Far East Side TIF; Enos Park TIF; S.H.A. TIF; and the Northeast TIF. The City of Springfield will consider the eligibility of other sites as requested.
Utility Rate Rider: CWLP offers an Economic Development Rider to any new or existing permanent, general service customer meeting specific demand qualifications.
Private Activity Bonds: As a “home-rule” unit of government, the City of Springfield may issue these bonds as a way to offer tax-exempt financing for qualifying manufacturing companies. Bonds are issued by the city, on behalf of the borrower, to finance new construction, rehabilitation, new equipment and other related developmental costs. Interest paid on the bonds is tax-free to investors, which induces lending at substantially lower costs – often as much as 2%-3% below conventional financing.
Infrastructure Assistance: Through the use of Community Development Block Grant funds, the City of Springfield can provide assistance for public infrastructure improvements, which lead directly to the creation or retention of jobs that qualify as meeting HUD obligations benefiting low to moderate income persons. Funding amounts will vary, depending upon the costs associated with the necessary improvements needed to complete the project.
More information on programs offered by the City of Springfield Office of Planning & Economic Development can be found on their website http://www.springfield.il.us/ or by calling (217) 789-2377.
DCEO’s Bureau of Business Development administers a wide array of programs and services designed to help Illinois businesses thrive in todays economy. DCEO offers expansion incentives, technology support services, access to capital, global marketing expertise, or job training and education for workers. The department’s trained staff is committed to forging partnerships with the private sector in an effort to build upon Illinois’ reputation as a world class center for business and industry. This includes a strong emphasis on programs designed to provide small businesses — particularly minority and female entrepreneurs — with the resources they need to succeed and grow their business opportunities. Click on the links below to learn about State programs available.