BUSINESS RESOURCES & TAX INCENTIVES

WE’VE SET THE RIGHT CONDITIONS FOR SUCCESS.

The leaders of DuPage County have fostered a business-friendly environment—with everything your business needs to prosper. Together, we’ll coordinate the incentives, grants and other programs that will maximize your return-on-investment, making DuPage the place where commerce thrives.

Choose DuPage can help you identify which programs would be suitable for your location or expansion projects and will facilitate meetings with the respective agencies and units of government to begin the process. Please contact us at (630) 955-2090 to learn how these programs might help with your company’s location and expansion plans.

Accion Chicago is an alternative lending organization dedicated to providing credit and other business services to small business owners who do not have access to traditional sources of financing. By encouraging the economic self-reliance of microentrepreneurs throughout the Chicagoland area, Accion Chicago strives to help businesses and communities grow.

Small businesses who have been negatively impacted by the credit crunch should look to Advantage Illinois, which consists of multiple programs to encourage institutional lending to small businesses, as well as the Invest Illinois Venture Fund to leverage private capital in start-ups and high-growth sectors. Some small businesses may also receive Advantage Illinois financing as part of a business assistance package.

Advantage Illinois is funded by $78 million in federal funds from the State Small Business Credit Initiative (SSBCI) which is reserved in a State Treasurer’s account solely for this purpose. The program should generate a minimum of at least $10 in new private lending for every $1 of federal funding, meaning at least $800 million in private dollars pumped into the Illinois economy to grow the small business sector.

Together with Cook, Kane, Kendall, Lake, McHenry, and Will Counties, DuPage County and Choose DuPage have joined in supporting regional economic development through the Chicago Regional Growth Corporation (CRGC). The organization fosters collaboration and cultivates a regional approach to economic development in order to generate inclusive growth and prosperity across northeastern Illinois. It’s mission is to: Provide a platform for collaboration from public and private leaders. Prioritize, align and manage the region’s economic development activities to increase competitiveness and improve access for historically disinvested communities. Provide a unified voice for northeastern Illinois.

The Green Building Incentive Program enables private sector developers or property owners who implement green design standards into their projects to receive the following incentives: expedited building permit review (25%-time reduction), expedited storm water review for both incorporated and unincorporated projects (25%-time reduction), reduction of building permit, zoning and plat application fees (10% fee reduction), and expedited zoning (ZBA) and plat process. All types of construction and development projects that meet the USGBC criteria for Platinum or Gold Leadership in Energy and Environmental Design (LEED) certification would qualify for the incentives. For more information click here, or contact the DuPage County Regulatory Services Division at (630) 407-6700.

Illinois’ EDGE program provides annual corporate tax credits to qualifying businesses which support job creation, capital investment and improve the standard of living for all Illinois residents.

Initial qualification criteria require certain job creation and project investment requirements:

100 or Fewer World-Wide Employees; Job Creation: The lesser of 5% of world-wide employment, or 50 new full-time jobs; Investment: $0 (Applicants cannot receive more in credits than the project investment)

More than 100 World-Wide Employees; Job Creation: The lesser of 10% of world-wide employment, or 50 new full-time jobs; Investment: $2,500,000

The non-refundable income tax credit is equal to 50% of the income tax withholdings of new job created in the state. This percentage increases to 75% if the business expansion project is located in an “underserved area” census tract which meets one of the following four tests: (1) Poverty rate of at least 20%; (2) 75% or more of the children in the area are eligible to participate in the federal free lunch or reduced-price meals program for a period of at least two consecutive calendar years preceding the date of the application; (3) At least 20% of the households in the area receive assistance under the Supplemental Nutrition Assistance Program (SNAP) for a period of at least two consecutive calendar years preceding the date of the application; or (4) Average unemployment rate that is more than 120% of the national unemployment average, for a period of at least two consecutive calendar years preceding the date of the application.

Additional credits are also available as reimbursement for qualifying training costs. 10% of eligible training costs of newly hired full-time employees’ positions at the project may also be included as part of annual credits. Qualifying credits are identified as costs incurred to upgrade the technological skills of full-time employees in Illinois and include: curriculum development, training materials (including scrap product costs); trainee domestic travel expenses; instructor costs (including wages, fringe benefits, tuition and domestic travel expenses); and rent, purchase or lease of training equipment; and other usual and customary training costs.

Note: Training costs do not include costs associated with travel outside the United States (unless the Taxpayer receives prior written approval for the travel by the Director based on a showing of substantial need or other proof the training is not reasonably available within the United States), wages and fringe benefits of employees during periods of training, or administrative cost related to Full-Time Employees of the Taxpayer.

Tax credits amounts are calculated on a case-by-case basis. EDGE credits are processed on an annual basis, for up to 10 years, based upon employment ramp-up plans outlined by the business and agreed to by the Department.

For more information, CLICK HERE.

The Illinois Angel Investment Credit Program offers tax credits to qualifying firms who invest in Illinois’ new business ventures. The main goal of the program is to encourage job growth and expand capital investment in Illinois. Participating businesses will receive a tax credit equal to 25% of the investment made directly to a qualified new business venture. The maximum amount that may be used as a basis for this credit is $2,000,000 per direct investment. Businesses desiring to be registered, as a qualified new business venture must submit a registration form in each taxable year for which the business desires registration. The registration will attest to the fact that the business is principally engaged in innovation, their business headquarters is located in Illinois and their business has the potential for increasing jobs and capital investment in Illinois. Interested firms or individuals desiring a tax credit based on their investment in a qualified new business venture must submit an application to the Illinois Department of Commerce and Economic Opportunity, which attests to the fact that an investment has been made and remains in the qualified new business venture for no less than three years.

Illinois BIS is a not-for-profit organization that provides business training and consulting services. For over 30 years, Illinois BIS has helped thousands of companies improve the quality, efficiency, productivity, leadership, innovation, global growth and technical skills of their leaders and employees. The Illinois BIS specialty is systematic, company-wide improvement. They help companies get to the root cause of their problems and prevent them from happening again. They also offer public workshops for individual and professional development. The staff at Illinois BIS are passionate about helping businesses grow profitably and developing future leaders.

Illinois BIS Facts:

Illinois BIS serves manufacturers, healthcare industries, service sector firms, not-for-profits and government agencies.
Over 90% of BIS new customers are from referrals.
BIS instructors and consultants are outstanding, full-time industry experienced experts in their fields.
BIS offers grant funding through the Department of Commerce and Economic Opportunity for eligible companies to defray the costs of training by 50%.
BIS offers a full breath of training and consulting, from Strategy, Leadership and Innovation to Technical Training. BIS partners with their customers to serve the entire workplace.
Hundreds of long-term BIS customers who embrace the BIS philosophy of system-wide continuous improvement are thriving
BIS training is “hands-on” using a ‘learn by doing’ approach with lasting results.
In a recent survey of 200 Illinois BIS customers, 100% said they were highly satisfied with the results.

Illinois Business Financial Services (IBFS) is a Certified Development Company that works in partnership with the U.S. Small Business Administration (SBA). Since 1981, Illinois Business Financial Services has been developing diversified loan programs for small businesses, utilizing the SBA 504 and other loan programs to create jobs and millions of dollars in project funding.

The Illinois Department of Transportation (IDOT) offers three programs that provide assistance with improving highway and rail access improvements to new or expanding industrial, distribution or tourism developments. IDOT’s Economic Development Program is designed to provide state assistance to local governments for highway improvements and access to new or expanding industrial distribution and tourism projects. The Railroad Freight Program is provided to offer capital assistance to communities, railroads and shippers to preserve and improve rail freight service in Illinois. The Truck Access Route Program program is intended to provide grants to local government agencies to assist them in upgrading roads to accommodate 80,000-pound trucks. The focus of these programs is the retention and creation of jobs in Illinois. Funding may be available for transportation improvement projects related to facilities that provide direct access to economic development projects. Projects providing access to retail establishments, office parks, government facilities or schools and universities are not eligible.

The Illinois Finance Authority (IFA) is a self-financed, state authority principally engaged with issuing taxable and tax-exempt bonds, making loans, and investing capital for businesses, non-profit corporations, agriculture and local government units statewide. IFA finances about $3 billion each year, helping generate economic growth and job creation.

The Illinois State Treasurer’s Office offers programs that are designed to assist the Illinois business community by providing access to capital and financing at affordable rates in order to promote economic development activities that create and retain jobs within the state.

Illinois Ventures for Community Action is an organization whose membership is comprised of Community Action Agencies throughout the state. Illinois Ventures for Community Action is a not-for-profit corporation whose purpose is to undertake job creation and economic development activities, and to distribute any profit therefrom to its member agencies to finance activities designed to eliminate poverty in Illinois. The majority of loans provided by the organization are through the Community Service Block Grant Loan Program. This loan program is administered jointly by the Illinois Department of Commerce and Economic Opportunity, statewide Community Action Agencies and Illinois Ventures for Community Action. The Program provides long-term, fixed-rate financing to new or expanding companies in exchange for job creation and employment for low income individuals.

Administered through the Illinois Finance Authority, the industrial revenue bond program provides the authority with the ability to issue tax exempt industrial revenue bonds on behalf of Illinois manufacturers looking for long term financing on the purchase or renovation of fixed assets such as land, building, and equipment. Industrial revenue bonds may finance up to 100% of the total costs for qualifying projects of at least $1.5 million. Terms of the bonds may not exceed 10 years. A $1,500 non- refundable fee is required upon submission of application.

The municipalities in DuPage County offer various incentive programs depending upon the jurisdiction. For more information contact Choose DuPage at (630) 955-2090.

Metro Chicago Exports is an unprecendented collaboration between the seven counties in Northeastern Illinois (Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will) and the City of Chicago to increase exports from small and medium-sized companies and to support regional job growth.

www.metrochicagoexports.com

The 504 program helps healthy, for profit businesses with financing for projects involving the purchase, construction, or improvement of fixed assets. Banks and other lenders participate for 50% of the total project cost, while SomerCor finances 40% (up to $1.5 Million and even up to $4 Million in some cases) of the balance. This leaves only a 10% down payment for the business, helping it to preserve valuable working capital. The 504 program is a win-win arrangement. The business maximizes the amount of money it receives and the bank gets a first lien on all the assets with only a 50% loan to value.

One of the main tools used to spur economic growth at the municipal level in Illinois is the Tax Increment Financing District (TIF). Illinois law allows units of local governments the ability to designate areas within their jurisdiction as TIF districts. These specially designated districts dedicate the sales tax revenues and additional property tax revenues generated within the TIF for improvements within the district in hopes of encouraging new economic development and jobs. TIF funds may be used for costs associated with the development or redevelopment of property within the TIF. This can include, for example, using funds to: redevelop substandard, obsolete, or vacant buildings; upgrade public infrastructure for the development of a site for new or commercial use; and/or to clean up polluted areas for redevelopment. View municipalities with active TIF districts

The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States. The SBA has a variety of products and services to assist small business succeed, including: The 7(a) Loan Guaranty Program The 7(a) Loan Program includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes. Microloan Program The Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries make loans to eligible borrowers. The maximum loan amount is $50,000, but the average microloan is about $13,000.

The mission of workNet DuPage Career Center is to help people get back to work, and to help businesses hire and train a skilled workforce. If you are a business that needs workforce assistance, please complete this online form to tell us how we can best help you.