Incentives

Local

State

Local Incentives

1. NEW! Economic Development Project Areas (EDPA's)

Grundy County EDPA #1

One of the NEWEST incentive tools in the State of Illinois, Grundy County's Economic Development Project Areas (EDPA's) are now available to help bring new industrial development to Grundy County. The EDPA's are industrial zones that can be strategically placed throughout the County where major industrial projects wish to locate. There are five zones available, each influencing an industrial projects's property tax bill; essentially lowering the cost of doing business to provide significant tax relief to new industrial investors in Grundy County. The EDPA's are an exceptional economic development tool. For more information contact the GEDC.

2. Tax Abatement Program

Grundy County offers a pre-negotiated, three-year property tax abatement to qualifying companies. Eligible companies can receive an abatement of up to 75% during the first fully assessed tax year, 50% the second year and 25% the third year to start a new project or expand an existing business. Grundy County also offers four and five-year property tax abatements at 50% each year to qualifying high impact companies.

After an application is received, each affected taxing district votes to approve or deny the abatement. Districts act individually allowing some to proceed with the abatement even if others deny the request. Requirements for the tax abatement programs include:

1) The development must have an assessed valuation of $500,000 or greater
2) Applications will be evaluated and scored on job creation, wage rates, real estate taxes generated and other economic indicators.
3) The eligible company must meet wage requirements and hire at least 50% of workers from taxing districts that grant the abatement.
4) The company must sign all documents prior to closing.

3. Upper Illinois River Valley Development Authority (UIRVDA)

UIRVDA issues ten to thirty year tax-exempt Industrial Revenue Bonds to manufacturing companies to finance the acquisition of assets or to construct new or renovate existing facilities. Interest rates can be either fixed or variable and are generally 2-3% below prevailing rates. No fixed minimum job creation or capital investment requirements apply, and the Industrial Revenue Bonds can finance up to 100% of eligible project costs. Eligibility requirements and fees apply.

UIRVDA issues ten to thirty year Taxable Revenue Bonds to any commercial, industrial, transportation, or recreational project that is not eligible for tax-exempt financing. Proceeds from the bonds can be used to purchase land, buildings, and equipment or to construct new or renovate existing facilities. Interest rates may be fixed or variable and are generally 1 - 1.5% below prevailing rates. No fixed minimum job creation or capital investment requirements apply, and the Taxable Revenue Bonds can finance up to 100% of eligible project costs. Fees apply.

For an application or more information, please contact the Upper Illinois River Valley Development Authority at 866-325-7525.

4. Job Training Program

The Grundy Economic Development Council also has a number of programs designed to assist industrial companies that create jobs and generate tax revenues within the county. Companies can access a state-funded program for the training and retraining of an existing workforce available through the nearby Joliet Junior College Institute of Economic Technology.

5. Grundy County Industrial TIF Districts

Seneca TIF District

Formed in December 2003, the TIF District is broken into two separate areas, east and west. The east side district contains 82 acres of prime land in Grundy County, and the west side district includes 175 acres in LaSalle County. The entire district is zoned for industrial use, and parcels can be subdivided.

Amenities include the Illinois River on the south, US Route 6 (1 mile away), and Interstate 80 (5 miles away). CSX rail and Iowa Interstate Rail also serve the district.
The Seneca TIF also includes:
* Lifting cranes (200 tons)
* Barge loading equipment
* Rail to truck loading
* 12,000 lin. ft. of rail
* Transfer equipment
* 100 car unit train capability
* 640 ft. concrete dock
* 3-one million gallon liquid storage tanks

Gardner TIF District

The TIF district in Gardner, Illinois is comprised of 300 acres of prime, industrial zoned land. Located just .5 miles from Interstate 55 and with possible railroad access, this district is ideal for light or heavy industry.

For more information regarding TIFs in Grundy County, please contact the Grundy Economic Development Council.

State Incentives

EDGE Tax Credit
The Economic Development for a Growing Economy (EDGE) Tax Credit Program provides non-refundable tax credits against corporate state income taxes, on a case-by-case basis, for up to ten years for businesses newly locating or expanding in Illinois. Manufacturing, tourism, or interstate services, excluding retail and professional services, may apply. To be eligible, businesses must invest at least $5 million in capital improvements, create a minimum of 25 new jobs, and overall positively impact the Illinois economy.

Industrial Training Program
The Industrial Training Program (ITP) assists Illinois companies in training new workers or in retraining or upgrading the skills of their existing employees. Grants are available to individual companies and to intermediary organizations offering to provide training to meet the needs of multiple companies.

Illinois STEP
The Illinois State Treasurer’s Economic Program (STEP) encourages economic development and business expansion by offering Illinois companies access to capital to create or retain jobs in the state. The Treasurer deposits up to $25,000 at below market interest rates into the borrower’s financial institution for each full-time job created or maintained. The financial institution determines the credit worthiness of the borrower and lends the money at below prevailing interest rates for terms ranging from one to five years. Eligible projects demonstrate the creation of a minimum of five full-time or ten part-time jobs, the long-term economic benefits gained by the State of Illinois, and that the borrower has the financial ability to carry out the project.

Illinois ER Program
The Illinois State Treasurer’s Economic Recovery Loan Program (ER) encourages domestic and international businesses to locate in Illinois. The Treasurer deposits up to $50,000 at below market interest rates into the borrower’s financial institution for each full-time job created in the state. The financial institution determines the credit worthiness of the borrower and lends the money at below prevailing interest rates for terms ranging up to five years. The Treasurer reserves the sole discretion to approve Economic Recovery Loan Program applications. Retail firms are not eligible to apply.

Experience Illinois
The Experience Illinois Program promotes historic preservation, tourism development, and enhancement of communities in Illinois. The Treasurer deposits funds at below market interest rates into the borrower’s financial institution. The financial institution determines the credit worthiness of the borrower and lends the money at below prevailing interest rates for terms ranging from one to five years.

For more information, contact the Illinois State Treasurer's Office or the Illinois Department of Commerce and Community Affairs.

One of the Small Business Administration’s primary lending programs, the 7(a) Loan Guaranty Program, operates through private-sector lenders to make loans to small businesses. 7(a) loans can be used to: expand or renovate facilities; purchase machinery, equipment, fixtures, and leasehold improvements; finance receivables; refinance existing debt; finance seasonal lines of credit; construct commercial buildings; and/or purchase land or buildings. The length of the loan typically runs from five to ten years for working capital and up to twenty-five years for fixed assets. Interest rates may be either fixed or variable. They are negotiated between the lender and the borrower and subject to maximums that are pegged to the Prime Rate. Eligible projects operate for-profit and meet the size requirements determined by the SBA.

The Low Documentation Loan (LowDoc) Program offers rapid turnarounds on loans up to $150,000. The SBA guarantees up to 80% of the loan amount, and completed applications are usually processed within two or three business days. Loan proceeds may not be used to repay certain types of existing debt. Eligible businesses are start-ups or businesses with average annual sales for the past three years not exceeding $5 million and have one hundred or fewer employees.

The SBAExpress authorizes preferred lenders to loan businesses amounts up to $150,000. The Small Business Administration guarantees up to 50% of the loan amount. SBAExpress loans’ maturities usually range from five to seven years for working capital and up to twenty-five years for real estate or equipment.

The SBA 504 Loan Program offers long-term, fixed-rate financing, usually below market rates to encourage business expansion and job creation. All project costs can be financed under the SBA 504 Loan Program. Eligible businesses are small, with a net worth under $6 million, a net profit after taxes of under $2 million, or meet other SBA defined size standards; and operate for-profit as any type of retail, service, wholesale, or manufacturing business.

For more information, please contact the Small Business Administration at 312-353-4528 or http://www.sbs.gov/il/.