Job Creation Grant (Lynchburg EDA)

Job Creation Grant (Lynchburg EDA) is sponsored by Lynchburg Economic Development Authority. This program offers incentives to support employment expansion and business investment in Lynchburg. It provides cash grants for job creation and incentives for real estate rehabilitation.

Local programs from the Lynchburg EDA in Virginia Economic Development Authority You are using an outdated browser. Please upgrade your browser to improve your experience. When your business is ready to invest in Lynchburg and our workforce, we are ready to support you through targeted investments that provide immediate returns and long-term benefits for Lynchburg citizens.

Below is a sample of incentives and credits available to eligible firms relocating to or expanding in Lynchburg. All programs administered by the Office of Economic Development & Tourism and Economic Development Authority are subject to modification, the availability of funds, and review and approval by the Authority and staff.

Please review the most current available information and contact our office for clarification prior to beginning your project. A ten-week cohort-based program that equips aspiring entrepreneurs with the insights, relationships, and tools needed to turn ideas into action and transform passions into sustainable businesses. This program grants real estate tax exemptions for eligible and qualified properties under rehabilitation/renovation.

James River Arts & Cultural District Program A program offering business incentives and grants, funded by amusement tax revenues, to support arts and culture projects within the designated district, enhancing community welfare and economic vitality. The City of Lynchburg boasts two Enterprise Zones providing investment incentives covering 4,200 acres of commercial property.

In our Enterprise Zones, state and local incentives combine to support existing business expansion and new business relocation. Incentives include cash grants for real estate investments and job creation, along with local benefits for qualifying investments.

Real Property Investment Grant Qualified real property investments in a commercial, industrial or mixed-use building or facility within the boundaries of a designated Virginia Enterprise Zone (requires at least 30% commercial space) 20% cash grant for real property rehabilitation investments above a $100,000 threshold 20% cash grant for new construction investments above a $500,000 threshold Grant capped at $100,000 for investments less than $5 million Grant capped at $200,000 for investments of $5 million or more Cash grant up to $800 per job per year for five years Requires creation of five jobs or more Requires wages equal to or above 175% of the Federal minimum wage with benefits Personal service, retail, food and beverage positions are not eligible Grant will be based on the wages paid for those grant eligible positions Interactive Enterprise Zone Activity Map EDA Capital Investment Program Incentive value in the form of cash, infrastructure improvements or other support as determined by the EDA may be given for eligible capital investments.

All taxes generated by capital investment (business personal property, machinery & tools, real estate improvement, etc.) must generate a positive return on investment over a 36-month period, which is subject to verification and the terms of a performance agreement. This program includes a maximum incentive equivalent to 2% of the capital investment up to $10 million or 1% of capital investment over $10 million, with a cap of $350,000.

The Job Creation Grant offers incentive value in the form of cash, infrastructure improvements or other support as determined by the EDA to support large-scale employment expansion. Grant value may be up to the value of a 2% increase in annual payroll of FTE positions with health benefits if base employment is increased by more than one-third or thirty net-new positions, whichever is greater.

This grant opportunity requires an annual payroll audit and a performance agreement. Real Estate Rehabilitation and Renovation Program This tax credit opportunity effects Residential, Multi-Family, and Commercial and Industrial spaces. Effective in January 2018, residential rehabilitation projects will be offered up to 10 years of real estate tax exemption on the improved value of the home.

Multi-Family properties, those representing five or more units, will receive eight years of tax exemption. Commercial and Industrial properties will be given up to ten years of tax exemption on the improved value of rehabilitation and renovation. This effort has the potential for job creation for commercial and industrial uses.

For more details, contact the City Assessor at (434) 455-3830 or visit http://www. lynchburgva. gov/real-estate-rehabilitation-and-renovation-program .

Local Redevelopment Program Designed to support small- and medium-scale investments in commercial property within the City of Lynchburg, the Local Redevelopment Program supports a portion of qualified expenditures. Property requires at least 30% commercial use, and a minimum investment of $25,000. Proper permitting is required to qualify, and submitted project costs are verified by final building permit.

Application and finalized building permit must be submitted by May 1st for work completed in the previous calendar year (defined as March 1st – February 28th). Funds will be awarded by June 30 th . For more information and application forms, including the Scoring Matrix , please contact the Office of Economic Development at 434-455-4494 or email marjette.

upshur@lynchburg. gov. The Federal Tax Cuts and Jobs Act of 2017 included provisions for a new revitalization tool, the Opportunity Zone and Opportunity Fund. The program will allow investors to receive tax benefits on currently unrealized capital gains by investing those gains in qualified census tracts, or Opportunity Zones.

There are four federally-designated zones in the City of Lynchburg. For more information on Opportunity Zones in the Commonwealth of Virginia, including an interactive map of designated zones, please visit the Department of Housing and Community Development Map Viewer . You can view Lynchburg’s Zones at https://mapviewer.

lynchburgva. gov/ParcelViewer/ and highlighting “Opportunity Zones” on the left sidebar. More information from the Department of Housing & Community Development is available here .

If you are interested in investment in projects or businesses in the City of Lynchburg, please contact Marjette Upshur at marjette. upshur@lynchburgva. gov or (434) 455-4490.

Technology Zones Present Opportunity The entire City of Lynchburg is a certified Technology Zone. Qualified tech-based businesses are eligible for local tax incentives for net new capital investment and job creation.

Any qualified technology business that locates in or is already located in the technology zone shall be entitled to a five-year reimbursement of business license taxes as follows: during the first calendar year, a 75 percent reimbursement; for the second calendar year a 50 percent reimbursement; and for the third, fourth and fifth calendar years a 25 percent reimbursement.

Requires a minimum $100,000 net new capital investment Within a 12-month period, hire five net new full-time employees Wages equal to or greater than 200% of the federal minimum wage For more information, contact Marjette Upshur, Director of Economic Development & Tourism at (434) 455-4490 or marjette. upshur@lynchburgva.

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