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Incentives & Programs :: COIDA
County of Otsego Industrial Development Agency Loan Fund & Benefits Loan Program
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Use:
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Commercial and Manufacturing Businesses
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Loan Amount:
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Range from $50,000-$150,000
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Interest Rate:
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4% fixed interest
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Term:
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3-5 years Working Capital
5-7 years Machinery and Equipment
10-15 years Real Estate Financing
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Project minimum:
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$125,000, with the County funding no more than 40% of
the total project
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Job Creation:
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One job should be created for every $20,000 borrowed.
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Additional COIDA Benefits
Sale/Leaseback Agreements: By taking a nominal interest in manufacturers' real property, the Industrial Development Agency can provide the following benefits:
- Payment in-Lieu-of Taxes (PILOT): Property taxes are frozen at their current level for five years. In addition, the following abatement schedule applies for improvements (e.g. a building) to the property:
| Manufacturing Project |
Commerical Project |
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1 - 5
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75%
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6 - 10
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50%
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| 11 - 15
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25%
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| 1 - 5 |
75% |
| 6 - 10 |
50% |
| 11 - 15 |
25% |
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- Sales Tax on Construction Materials and Equipment: None during the project phase (usually 6-12 months).
- Mortgage Recording Tax: None
- Industrial Revenue Bonds: For larger projects in excess of $1-$1.5 million. The issuance of tax-exempt industrial revenue bonds can save a company a substantial amount of money - interest savings of approximately 2% begin to significantly offset bond closing costs.
- Civic Facility Revenue Bonds: For Not-for-Profit organizations that need funding for new facilities, expansion of existing facilities, or development projects.
Click here for program guidelines and loan application.
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