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Business Expansion Incentive Program Performance-Based Incentives Up to 50% Property Tax Reimbursement Per Job max $360/job Also Available: Up to $3,000/Job for Targeted Hiring + O P E R A T I O N A L I N C E N T I V E S 2 Minimum Requirements Minimum Requirements  ‘But-For’ Statement  Federal, state and local laws  MBE/WBE Procurement Program requirements that allow contracting opportunities for local firms  City Code  City’s Living Wage  Health insurance or facilitate access (+ domestic partners & dependents)  Anti-harassment and anti-discrimination practices  If construction: 1) Workers Compensation Insurance and OSHA 10 Training, 2) City’s Prevailing Wage Program, and 3) City’s Living Wage 3 Minimum Requirements Local Expansions  5 New Full-Time Jobs created over 5 Years  Operational for >12 months within City of Austin Attractions  75 New Full-Time Jobs created over 10 Years  Company has no Significant Presence in City of Austin, or project delivers new division or operation 4 Community Benefits Talent Diversity, Development Inclusion & Equity Business Type / Sector/ Industry Diversification Quality of Life Enhancements Employment Opportunity Mobility Solutions Neighborhood Connection Sustainable Business Practices 5 Executed Agreements  Food retail establishment  Advanced manufacturing  Boutique staffing agency  $50,040 over 5 years  6 Traditional Hires 4 Targeted Hires broker and distributor  $25,308 over 5 years  36 Traditional Hires  $60,970 over 5 years  10 Targeted Hires  $1,545,000 in business personal property investment 6 7 Program Eligibility Eligible Uses  Be a private for-profit business, legally organized and a going concern for at least 2 years  Meet the size standards of the Small Business Administration (SBA)  Demonstrate financially ability to meet repayment requirements  Located in or willing to locate project in the Austin area as represented by Council 10-1 plan  Commit to create no less than one job (FTE) for every $35,000 borrowed  Acquisition of commercial and industrial land and buildings  Renovation and new construction of commercial and industrial buildings  Acquisition and installation of machinery and equipment  Refinancing of existing debt to an independent institutional lender (as part of a new project creating new job opportunities)  Working capital financing (only considered in conjunction with the total project and will not be financed independently) 8 Program Benefits  Interest Rates: Interest rates on FBLP loans are significantly below regular market interest rates for a variety of business expansion projects  Repayment Terms: Flexible repayment terms to meeting project-specific needs and financing to fund a wide range of eligible activities  Low Equity Requirement: FBLP only requires a 10% equity injection from the borrower, high down payments are common barrier to conventional financing  Creation and retention of jobs targeting low-to-moderate income community. 9 Contact Information: Xavier Zarate Acting Division Manager, EDD Xavier.Zarate@austintexas.gov