FINANCING AND INCENTIVE PROGRAMS FOR BUSINESSES

The City of Superior has three active Tax Incremental Financing (TIF) Districts. The City will establish a TIF District for the site adjacent to the Blaine Business Center. Property taxes generated by development within TIF districts are used to pay the costs of the public improvements that make the development possible. Business development projects are evaluated on an individual basis to determine the amount of incentives. Generally, the City of Superior can make grants to the new business to be used for site improvements, groundwork, utility hookups, foundations, slabs and other economic incentives

ENTERPRISE DEVELOPMENT ZONE PROGRAM

The Enterprise Development Zone Program provides tax incentives to new or expanding businesses whose projects will affect distressed areas. The Wisconsin Department of Commerce will determine if a project is eligible for an enterprise development zone based on information about the economic impact of the project, the prospective site, and the distress of the area. A non-refundable jobs credit of up to $8,000 for new full-time jobs being created and filled by members of target groups. Eligible target groups include W-2 participants, dislocated workers, federal Enterprise Community residents, vocational rehabilitation program referrals and Vietnam-era veterans, ex-felons and youth from low-income families. A non-refundable jobs credit of up to $6,000 for new-time jobs being created and filled by Wisconsin residents who are not members of target groups. The actual amount of job credits is dependent upon wages and benefits. Wages must be at least 150% of federal minimum wage. Full-time job means regular, non-seasonal, and required to work 2,080 hours per year. One-third of the allocated job credits must be claimed for jobs that are filled by target group members. Twenty-five percent (25%) of all credits allocated to a business must be for creating full-time jobs.

Douglas County Revolving Loan Fund

The Douglas County Revolving Loan Fund can provide below-market rate financing for land, buildings and equipment for projects located in Douglas County. Total amount of financing is based on the number and quality of jobs created. Interest rate will be determined by the Board of Directors on the date the loan application is approved. Interest rates on Revolving Loan Fund loans will be two percent (2%) below New York prime. Application

Northwest Business Development Corporation

NWBDC provides below-market rate loans to businesses located in Northwestern Wisconsin. Total amount of financing is based on the number and quality of jobs created.

The Wisconsin Department of Commerce has a number of financial assistance programs including, for example, the Major Economic Development (MED) Loan Program. MED provides below-market interest rate financing. The amount of help available through this loan program depends upon factors such as the total number of jobs to be created, the wage and benefit package to be offered, a company's commitment to expand in a particular community, the unemployment rate and other distress factors in that area, the needs of the company, and other incentives offered by the State of Wisconsin.

The Wisconsin Department of Commerce's Industrial Revenue Bond (IRB) Program allows Wisconsin municipalities to support industrial development through the sale of tax-exempt bonds. The proceeds of the bond sale are loaned to businesses to finance capital investment primarily for manufacturing facilities. Bond proceeds can be used to finance land, buildings, and equipment. IRBs offer long-term and often fixed-rate financing. Since the interest earned on IRBs is exempt from federal income taxes, interest rates on IRBs are typically between 1.5 to 2.5 percentage points below corporate bonds.

The Customized Labor Training (CLT) Program is designed to assist companies that are investing in new technologies or manufacturing processes by providing grants of up to 50% of the cost of training employees (up to $2,500 per employee trained) on the new technologies. Eligible costs include trainee wages, training materials and trainer costs.

The Wisconsin Job Service office includes services provided by the Division of Vocational Rehabilitation (DVR), Wisconsin Job Service, NWCEP, Inc., Superior Vocations Center and Wisconsin Indianhead Technical College. CEP, Inc. offers low-cost, customized organizational policy handbooks, job descriptions, performance-based evaluation systems, employee/management workshops and training, exit interviews, employee surveys, and personalized services. Financial assistance may be available to employers hiring certain targeted employees through tax credits and training subsidies. Assistance in meeting operational needs may be available at no cost through work experience placements. Tax credits through Welfare to Work Tax Credits and Work Opportunity Tax Credits.

NORTHLAND FOUNDATION BUSINESS FINANCE PROGRAM

Purpose: To stimulate private sector investments and create and retain jobs.

Eligibility: Businesses must be located in Superior-Douglas County, Wisconsin or in the Arrowhead Region of Northeastern Minnesota. Qualifying businesses generally are entities that, through their operations channel non-local dollars into the economy. Manufacturing and other value added business are preferred, but may other businesses qualify as well.

Finance Type: Business Loans to for-profit owner operated businesses.

Use of Funds: Purchase of land, building, equipment; working capital and refinancing.

FINANCE PARAMETERS

Interest: Below market interest, generally a fixed rate. Rates are negotiated based on the needs of the business and the level of risk incurred.

Repayment: Terms are negotiated based on the types of assets financed but generally amortizations will not exceed 15 years.

Amount

Available: Generally range from $50,000 to $500,000.

Collateral: Loans are always secured and collateral is usually by subordinated to institutional lenders and generally require a personal guarantee of any individual with at least 20% ownership in the borrowing firm.

Contact: John Elden or Kurt Johnson

The Northland Foundation

610 Sellwood Building

202 West Superior Street

Duluth, MN 55802

218-723-4040

The Development Association, Inc.
1401 Tower Avenue Suite 302
Superior, WI 54880
(715) 392-4749 (715) 392-4740
Fax: (715) 392-6131