Area Development California Resource Page
Direct Financial Incentives
California state government, cities, and counties have the authority to offer low-interest financing to manufacturers and other businesses locating in their communities through the use of tax-exempt industrial revenue bonds. An eligible bond project can be the construction of a new plant, expansion of an existing facility, or the replacement of all or part of an existing plant. Financing bears an interest rate significantly lower than conventional methods (as a result of the tax-exempt status of the securities), and the bonds are long-term with 15–30 year maturities. The bond proceeds can be used for real estate, construction, and equipment.
Infrastructure and Economic Development Bank:
Loans are available to assist local governments with the financing of infrastructure and public-works projects needed to support economic development and job-creation efforts. Eligible projects include water treatment and distribution, sewage collection and treatment, defense conversion and base reuse, streets and highways, drainage and flood control, public-safety facilities, public-transit projects, environmental mitigation, port facilities, and communications projects.
Customized training:
The Employment Training Panel (ETP) is a state agency founded in 1983 as a cooperative business-labor program designed to train and retrain workers. ETP is financed through a training tax collected through the state's unemployment insurance system, and benefits the economy by primarily focusing its funds on the training of unemployed workers for high-wage, high-skill jobs and on the retraining of incumbent workers of businesses challenged by out-of-state competition. ETP provides funds to employers so they may train California workers who are currently employed or drawing or have exhausted unemployment insurance benefits. Single employers, groups of employers, training agencies, and workforce investment boards are all eligible to apply for ETP funding. Reimbursements for the costs of providing the training average $1,500 per employee trained and retained by the employer for at least 90 days after completion of the training. Training may be provided in the classroom, in a laboratory environment, on the job (under certain circumstances), or any combination of the three. Businesses retain control of the content of the training program.
Enterprise zones:
California's Enterprise Zone Program — an innovative partnership between the state, local government, and the private sector — spurs business development in designated areas through special zone incentives. Incentives include sales hiring tax credits and sales and use tax credits, waivers or reductions of local fees, and expedited permit processing.
LAMBRA zones:
Businesses in LAMBRA (Local Agency Military Base Recovery Area) zones receive incentives similar to those of enterprise zones. Participating cities and communities include: Mare Island (Vallejo); Castle Airport (Merced); Southern California Logistical Airport (Victorville); Tustin Legacy (Tustin); Alameda Point (Alameda); San Diego Naval Training Center (San Diego); San Bernardino International Airport and Trade Center (San Bernardino); Mather (Sacramento); and McClellan (Sacramento).
Small business financing:
California assists small businesses through loan programs that target specific needs such as energy conservation, hazardous-waste reduction, acquisition of equipment to reduce air emissions, disaster relief, and equipment or working capital for small farms. Additionally, the State Loan Guarantee Program provides guarantees to banks and other financial institutions so that eligible small companies can obtain needed credit.
California Business Investment Services
722 Capitol Mall
Sacramento, CA 95814
(916) 654-7216
