Lynchburg: Among Forbes Best Places for Business
LEDA Capital Investment Grant
LEDA Job Creation Grant
Local Redevelopment Grant
Real Estate Rehab and Renovation Tax Credits
Industrial Park Properties
Financing: Loans, Grants and Bonds
Arts & Cultural Business Incentives
Business Development Center Assistance
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. Details and documents are below.
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
- 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.
Job Creation Grants
- 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.
In recognition of Lynchburg’s leadership in tech-based business and industry, the entire City of Lynchburg is now a Technology Zone. Qualified tech-based businesses are eligible for local tax incentives for net new capital investment and job creation. Businesses must first certify they are primarily engaged in or utilize technology in their business processes, products or services.
- 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
- Provides five year tax incentive on the incremental increase for either Machinery and Tools Tax or Business, Professional and Occupational License Tax, on a sliding scale.
Incentive value (may be cash, infrastructure improvements or other support as determined by the EDA) 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, subject to verification and the terms of a performance agreement. Maximum incentive equivalent to 2 percent of capital investment up to $10MM, 1 percent of capital investment over $10MM, with a cap of $350,000.
Grants (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. Requires annual payroll audit and a performance agreement.
COMING SOON! Grants to support commercial redevelopment throughout the city’s two Enterprise Zones for smaller-scale investments. Scheduled for FY2013.
Up to five years of real estate tax exemption on the improved value of rehabilitation and renovation. For commercial and industrial real estate, the existing structure must be 25-years-old and the improvements must increase the assessed value by 60% or more. For more details, see the attached flyer, or contact the City Assessor at 434-455-3830.
The Lynchburg Economic Development Authority owns and manages two industrial parks. For major qualifying investments, LEDA may offer sale or lease of property at attractive rates, build-to-lease or build-to-own arrangements, site preparation, infrastructure improvements and/or other development assistance.
The LEDA and LOED offer business and development financing ranging from local capital up to $250,000 from a revolving loan fund to tax-exempt industrial revenue bonds. We can also connect your business to microloans and other small-business financing and assist in applications for SBIR and STTR.
Arts & Cultural businesses locating within the city’s James River Arts & Cultural District are eligible for reimbursement of certain business license taxes, along with regulatory flexibility as applicable and approved.
The Lynchburg Business Development Center provides business assistance services to entrepreneurs, new business owners and existing small business owners. The LBDC can assist with business and marketing plan development as well as financing. For more information, contact the LBDC at lbdc.com or 434-582-6100.