FINANCING & INCENTIVES

Commercial Area Revitalization Effort (CARE) Program

View Printable CARE Brochure
The City of Richmond CARE and Extra-CARE Programs are designed to revitalize and return economic viability to older neighborhood commercial districts, primarily in the city’s low and moderate-income communities.

The program operates through a partnership between local neighborhood merchants, residents and the City of Richmond. The Department of Economic Development (DED), through the Richmond Economic Development Authority (EDA), provides business loans and rebates for CARE area businesses. DED staff also provides technical assistance and coordinates the delivery of City services and public improvements.

CARE Neighborhoods:
• Swansboro
• Brookland Park Boulevard
• Lombardy/Chamberlayne
• Meadowbridge
• Jackson Ward
• North 25th Street
• Midlothian Turnpike
• Hull Street
• Fulton Hill
• North Avenue
• Shockoe Bottom

Extra-CARE Neighborhoods:
• Belt Boulevard
• Upper Hull Street

CARE Assistance Programs:
• Operation Facelift - An area-wide program that provides a modest, but free, storefront makeover to give an initial boost to the CARE area.
• Exterior Rehabilitation - The City will rebate 50%, up to $3,000 for renovation and improvements to the exterior of commercial space including limited landscaping.
• Security Improvements - The City will rebate 50%, up to $3,000 for security improvements to the commercial space.
• Interior Rehabilitation - A program that provides a 50% rebate up to $3,000 for renovations to the interior of the commercial space.
• CARE Loan Program - A program that provides low interest loans for building rehabilitation and renovation of commercial space.
• Water Lateral Sprinkler System Rebate - The City will rebate 100% up to $7,500 for the connection of a water lateral line and or the installation of sprinkler or fire suppression systems necessary for proposed rehabilitation.

For more information, please contact:

Denise Lawus
Economic Development Program Administrator
Department of Economic Development
(p)804.646.5633
Denise.Lawus@richmondgov.com

Enterprise Zone Programs

Listed below are the various incentives available to businesses located in Enterprise Zones at the City and State Level. To find out if a particular property is in an Enterprise Zone, please call:

The Department of Economic Development

(p)804.646.5633 or Check Online at: Property Info

Local Enterprise Zone Incentives:

View Printable Local Enterprise Zone Incentives Brochure(PDF)

Real Estate Tax Abatement Program:

A ten-year real estate tax abatement for commercial and industrial structures with seven years full and a three-year phase out with 75%, 50%, and 25% reduction in taxes with the full tax applied in Year 11.

• Applications are submitted in Room 110, City Hall (900 East Broad Street).
• The program is administered jointly by the Department of Community Development and the City Assessor's Office.
• Properties are taxed on the assessed base value established at the time of the application to the program during the abatement period.
• The applicant must invest 40% of the assessed value of the existing structure and work must be finished within 24 months of the date of the application.

Brownfields Enterprise Zone Rebate:

A one-time dollar for dollar rebate for a combined Phase I/Phase II Environmental Site Assessment with a maximum of $3,500 or a maximum of $7,500 for a Phase II Site Assessment.

• Site Assessments must meet EPA standards.
• Applicant must either own or have a contract of purchase on a property within one of the City's three Enterprise Zones.
• Application must be submitted within nine (9) months of completion date of the Environmental Site Assessment report.

Machinery and Equipment Rebate:

A 50% rebate on the purchase of specialized machinery and equipment up to a maximum of $5,000.

• Machinery may be new or used.
• The applicant must apply within nine (9) months of the qualified purchase of machinery and equipment.
• No business can receive more than $5,000 in any calendar year.

Employment Assistance Grant:

A grant of $400 per net new eligible full-time permanent position up to a maximum of $7,500 every two years to be provided to a new or expanding business.

• Position must have a wage equal to 1.5 times the Federal minimum wage or higher; the current number is $8.78/hr.
• Applications may be submitted upon the completion of a minimum of 11 months employment for at least one position.
• A company applying for or granted a State Job Creation Grant for the same positions is not eligible for this incentive.

Loan Fee Rebate:

A one-time, dollar for dollar rebate covering qualified incurred loan financing fees up to a maximum of $1,000.

• Private, Federal and State loan sources are eligible; city-originated loan programs are exempt.
• Applications are due within nine (9) months of the closing date.

Development Fee Rebate:

A one-time permit fee rebate dollar for dollar for permits associated with the renovation or construction of commercial and industrial facilities up to a maximum of $3,000.

• A minimum of $20,000 must have been invested in the rehabilitated or new structure within the past 12 months.
• The incentive must be applied for within nine (9) months of obtaining the Certificate of Occupancy or equivalent document.

Business Relocation Rebate:

A one-time reimbursement of 50% of the eligible relocation expenditures up to a maximum of $10,000.

• The incentive must be applied for within nine (9) months of the move-in date.

NOTE:

Eligible properties/companies must be located within one of the City's three Enterprise Zones and be associated with a commercial or industrial land use.

For more information on Local Enterprise Zone Incentives, please contact:

Lisbeth Coker
Commercial Development Coordinator
City of Richmond, Department of Economic Development
(p)804.646.3792
Lisbeth.Coker@richmondgov.com

State Enterprise Zone Incentives:

View Printable State Enterprise Zone Incentives Brochure(PDF)

Job Creation Grant
• Awards are made on new jobs above a four-job threshold.
• Retail, personal service and food & beverage establishments are not eligible.
• Companies paying less than 200% but at least 175% of the federal minimum wage ($5.85/hr) and offering health benefits to their employees may qualify for an $500 position/year grant for up to five (5) consecutive years.
• Companies paying less than 175% of the federal minimum wage will not qualify for the job credit.
• A business can receive grants for up to 350 positions in a given year.
• Job creation grants are based on the calendar year.
• Grant awards will be pro-rated on the basis of the number of months worked during the applicable year.

Real Property Investment Grant

• This incentive is awarded to enterprise investors who meet minimum enterprise zone real property investment thresholds.
• The minimum investment threshold for rehabilitation or an expansion project is $50,000.
• The minimum investment threshold for new construction is $250,000.
• Projects involving up to $5 million in qualified enterprise zone investment may be eligible for a grant equal to 20% of the amount of the qualified enterprise zone investment not to exceed $125,000 ($625,000 investment) for any building or facility within a five-year period.
• Projects involving $5 million or more in qualified enterprise zone investment not to exceed $250,000 for any building or facility within a five-year period.
• Any individual or entity (including non-profit entities) who has expended the minimum amount of $50,000 for rehabilitation and $250,000 for new construction may qualify for this grant.

Grant Application Procedures

• Information provided for enterprise zone incentive grants have to be attested by an independent certified public accountant licensed in Virginia.
• The local enterprise zone Administrator of the respective enterprise zone shall verify the location of a business or property for which a grant is requested.

Grandfathering

Please contact the Commonwealth of Virginia for more information.

Virginia Housing and Community Development
The Jackson Center
501 North Second Street
Richmond, Virginia 23219-1321
Contact:Marwa El-Messidi
(p)804.371.7111
(f)804.371.7090

Neighborhoods in Bloom (NIB) Revolving Loan Fund

View Printable NIB Brochure(PDF)
This program is designed to help businesses located in Neighborhoods in Bloom commercial corridors with loans up to $50,000 for working capital, rehabilitation, acquisitions, machinery, and equipment. The loans must create jobs, reduce blight, or provide needed services for low to moderate income residents.

NIB’s with Commercial Corridors:
• North 25th Street
• Highland Park
• Jackson Ward
• Brookland Park Boulevard
• Hull Street
• Carver

For more information, please contact:

Denise Lawus
Economic Development Program Administrator
Department of Economic Development
(p)804.646.5633
Denise.Lawus@richmondgov.com

Micro-Enterprise Loan Program

REDC is licensed by the United States Small Business Administration to provide loans and technical assistance services to small businesses located within the City of Richmond that lack accessibility to traditional financing.

Eligible Businesses: For-profit small businesses, and non-profit child care providers. Businesses must be located within the city limits, and have a valid business license.

Loan Amounts: Loans are available up to $35,000.

Eligible Loan Purposes: Start-up financing, seasonal or permanent working capital, equipment purchases, minor leasehold improvements and other legitimate business purposes.

This program is administered by the Richmond Economic Development Corporation

For more information, please CLICK HERE or contact:

Richmond Economic Development Corporation
(p)804.780.3012
www.redcfinance.org

Business Enterprise Zone Loan Program (BEZL)

The BEZL program provides financing to small businesses located in the City's enterprise zones that are unable to obtain traditional bank financing and must be 51% owner-occupied.

Use of Proceeds:

Proceeds can be used for the purchase or renovation of commercial or mixed-use properties, the acquisition of machinery and equipment, and working capital.

Maximum Term:

Maturities up to 20 years are available depending upon the loan purpose or the remaining useful life of the asset being purchased or renovated with loan proceeds.

Eligibility:

Businesses must be for profit and in operation for two (2) or more years and unable to obtain traditional bank financing.

This program is administered in conjunction with the Richmond Economic Development Corporation.

For more information, please CLICK HERE or contact:

Richmond Economic Development Corporation
(p)804.780.3012
www.redcfinance.org

Advantech Incubator

In cooperation with the Economic Development Authority, everything from office space to furniture to high-speed internet access is available at the Maggie L. Walker Business and Technology Center, an incubator to help grow small businesses. Each prospective incubator tenant must set up an interview with the building manager and undergo an application process, which includes a credit check and submission of a business plan.

For more information, go to: www.advantechva.org
Or Contact:
Advantech Building Manager
(p)804.521.4002

Advantech Incubator
501 East Franklin Street
Richmond, Virginia 23219

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