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Direct Financial Incentives

Direct investments/loans:
Capital development is a focus of Enterprise Florida, Inc., Florida's government/business partnership for economic development that assumed responsibility for guiding the state's economy. Capital development's mission is to build access to financial markets for small and medium-sized Florida firms in sectors generating high-wage jobs. Several financing programs are administered or marketed by Enterprise Florida, Inc. These include:
• • The SBA 504 subordinate mortgage loan program, administered by Florida First Capital Finance Corp. (FFCFC), offers loans that can be used to buy land or existing buildings, construct new or expanded facilities, and purchase machinery and equipment.
• • The Enterprise Bond program offers tax-exempt, low interest bond financing to qualified manufacturing and 501(c)(3) non-profit organizations through Florida Development Finance Corporation. This program was designed to improve low cost capital availability to Florida’s manufacturers and non profit companies that qualify for tax exempt finance under IRS rules, allowing these companies to be more competitive in the global and domestic market place. Bonds can be issued as stand-alone transactions or pooled transactions. Bonds can be credit enhanced through a direct pay letter of credit from an investment-grade commercial bank.
• • Loans and guarantees are available to black-owned and -operated businesses through the Florida Black Business Investment Board's regional affiliates.
• • Export finance-related direct loans and guarantees as well as packaging services are offered through the Florida Export Finance Corporation. This entity provides access to EXIM Bank and SBA export finance and working capital guaranty programs.
• • Enterprise Florida publishes on its website (www.eflorida.com) a listing of Florida based venture capital and angel firms providing risk capital to Florida companies. The listing can help economic development organizations assist entrepreneurs in raising risk-based capital.

The Florida Recycling Loan Program:
The program, administered by Florida First Capital Finance Corp. (FFCFC) for the Department of Environmental Protection, provides below-market financing for companies that manufacture products from recycled materials or convert recyclable materials into raw material for use in manufacturing. Direct loans have a minimum of $20,000 and a maximum of $200,000. Maturity is up to 10 years or the weighted average life of asset(s), whichever is less. Rate of interest is fixed for the life of the loan and may be as low as 2 percent below the prime lending rate. Eligible use includes machinery and equipment for manufacturing or processing, or for conversion systems utilizing materials that have been or will be recycled.

Private activity bonds (PABs):
There is a federal allocation of tax-exempt bonding authority granted to each state. Florida reserves a portion of its federal allocation of tax exempt debt for manufacturing to assure that bonding capacity is reserved to finance manufacturers, which are important to our economy.

Work force training:
• Quick Response Training Grant (QRT) is available for new or expanding Florida businesses that create high quality jobs and produce exportable (beyond local market) goods or services, particularly high-value-added businesses in Florida’s targeted industries.

Customized training programs, not available at the local level, are eligible for reimbursement for instructor wages, curriculum development and textbooks or manuals.

The process is designed to be a collaborative effort between the business requesting training, the fiscal agent who is a local, state educational entity (community college, school district or university) and Workforce Florida. The fiscal agent is available to assist in the application process. The company will choose the train provider. Once an application (available at www.workforceflorida.com) has been approved, a grant agreement is prepared and signed by the business, the fiscal agent and Workforce Florida, Inc.

• Incumbent Worker Training (IWT) is a program that provides training to currently employed workers to keep Florida's work force competitive in a global economy and to retain existing businesses. The program is available to all Florida businesses that have been in operation for at least one year prior to application and require training for existing employees.

High-Impact Performance Incentive (HIPI):
The High-Impact Performance Incentive Grant is a negotiated incentive used to attract and grow major high-impact facilities in Florida. Grants are provided to pre-approved applicants in certain high-impact sectors designated by the Governor's Office of Tourism, Trade and Economic Development (OTTED). In order to participate in the program, a company must operate within designated high-impact portions of the following sectors: clean energy, life sciences, financial services, transportation, equipment manufacturing, semiconductors and corporate headquarters; create at least 100 new full-time equivalent jobs (if an R&D facility, create at least 75 new full-time equivalent jobs) in Florida in a three-year period; and make a cumulative investment in the state of at least $100 million (if an R&D facility, make a cumulative investment of at least $75 million) in a three-year period. Once recommended by Enterprise Florida, Inc. (EFI) and approved by OTTED, the high-impact business is awarded 50 percent of the eligible grant upon commencement of operations and the balance of the awarded grant once full employment and capital investment goals are met.

Economic Development Transportation Fund:
The Economic Development Transportation Fund, commonly referred to as the "Road Fund," is an incentive tool designed to alleviate transportation problems that adversely impact a specific company's location or expansion decision. These grants are limited to $3 million per project and are awarded to the local government for public transportation facility improvements.

Special Opportunity Incentives

Rural incentives:
Florida encourages growth throughout the state by offering increased incentive awards and lower wage qualification thresholds in its rural counties. Additionally, a Rural Community Development Revolving Loan Fund and Rural Infrastructure Fund Grant exist to meet the special needs that businesses encounter in rural counties.

Urban incentives:
Florida offers increased incentive awards and lower wage qualification thresholds for businesses locating in many urban core/inner city areas that are experiencing conditions affecting the economic viability of the community and hampering the self-sufficiency of the residents.

Enterprise zone incentives:
Florida offers an assortment of tax incentives to businesses that choose to create employment within an enterprise zone, which is a specific geographic area targeted for economic revitalization. These include a sales and use tax credit, corporate income credit, sales tax refund for business machinery and equipment used in an enterprise zone, sales tax refund for building materials used in an enterprise zone, and a sales tax exemption for electrical energy used in an enterprise zone.

Brownfield incentives:
Florida offers incentives to businesses that locate in brownfield sites, which are industrial or commercial sites underutilized due to actual or perceived environmental contamination. The Brownfield Redevelopment Bonus Refund is available to encourage brownfield redevelopment and job creation. Approved applicants receive tax refunds of up to $2,500 for each job created.