Monday, May 21st, 2018 the Ashland Board of Commissioners approved an ordinance to develop an Economic Development Incentive Loan program which recognizes the importance of a growing and expanding economy by fostering an atmosphere that encourages economic development and provides incentives for the creation of new jobs in the business and industrial zoned areas of the City.
A Committee formed to review applications will consist of the Mayor (or other member of the Board of Commissioners), City Manager, Representative from the Finance Department, Representative from the Legal Department, and one City of Ashland resident with either experience as a Banker/Loan Officer, Certified Public Accountant, or Local business person. The Committee will make recommendations to the Board of Commissioners for approval.
Economic Development Incentive Loan:
- The maximum amount of assistance through this loan will not exceed $50,000.
- The funded project must either contribute one job per $25,000 and/or be instrumental in the retention of jobs that would otherwise be lost.
- Funding must be used for fixed asset of capital financing.
- Funding cannot be used for Operating expenses.
- The loan is 4-year, 48-month forgivable loan; balance reduced each year by 25% from the date of execution.
- A new or existing business entity that owns the property where is entity is housed, or possesses the property through a lease agreement for the duration of the incentive agreement. (Applicants incorporated as Nonprofits are ineligible.)
- Must be located in the corporate city limits of Ashland.
- Must observe all applicable zoning, business and code regulations.
- Must be current with all taxes and fees.
- Must provide a minimum of 20% equity of total project cost.
Application and Requirements:
- A description of the project, total project cost, sources of funding and purpose of the incentive application.
- A five (5) year pro forma, including the number of new jobs to be created, the wages, salaries, bonuses and commissions expected to be paid and the amount of Ashland employee withholdings expected to be generated by the new jobs.
- General information about company management capabilities, including resumes of top management and the company's marketing strategies.
- Such financial and non-financial information about the Applicant and/or its principles as is required by Ordinance or as otherwise deemed necessary by the Director or Committee.
- Principals as is required by this Ordinance or as otherwise deemed necessary by the Director or the Committee.
- Certification that the Applicant is an equal opportunity employer and agrees that it shall not discriminate in hiring and employment because of race, creed, color, national origin, religion, sex, age or disability and that it shall comply with all federal, state and local equal opportunity policies and laws to insure non-discrimination because of race, creed, national origin, religion, sex, age, or disability.
The full Ordinance provides further details on the program. Please direct any questions to Community and Economic Development. 606-327-2005.
Community & Economic Development
Economic Development Specialist
1700 Greenup Avenue
Ashland, KY 41101
8:30am - 5:00pm